California’s insurance industry is in crisis, making it difficult for landlords and apartment owners to obtain or retain insurance. Many face steep rate increases, policy exclusions, and frequent coverage declines. Even renewals come at a high cost.

In the past year, seven of the 12 largest insurance groups in California have paused or restricted new homeowner policies. Other insurers have significantly raised rates, excluded key coverages, or refused to cover older buildings. The California FAIR Plan, the insurer of last resort, warned of potential billion-dollar bailouts due to unprecedented exposure, now covering over $320 billion in property.

State Farm, for instance, will not renew about 30,000 property insurance policies and will withdraw from renewing around 42,000 commercial apartment policies, totaling 72,000 policies cut. All standard carriers have adjusted their underwriting criteria, some more significantly than others.

If you are running into difficulties in obtaining insurance for your apartment building, don’t stress out.  Call Lisa Kay at The Liberty Company Insurance Brokers.  Her number is (818) 572-4178.  Tell her Frank sent you.