California’s insurance crisis is ‘devastating’ the real estate market, commissioner says

By Megan Fan Munce : sfchronicle – excerpt

California’s insurance crisis is having a “devastating” effect on its real estate market, particularly affordable housing, Insurance Commissioner Ricardo Lara said in a recent interview.

The situation is “really creating a domino effect,” Lara said in an appearance on the “Table Talk” podcast of state Sen. Steve Glazer, a Democrat representing hard-hit Orinda. “If you can’t find insurance for your home, you can’t sell your home, which means local governments are not going to have the resources as you know to actually hire the firefighters to protect those homes.”

Lara suggested keeping insurance agents involved in the entire buying and selling process and advised that Californians looking to sell their homes should address issues such as old wiring or brush clearance that could make it difficult for buyers to find insurance.

He also urged consumers to explore getting insurance with companies outside the top 10. Companies with fewer policies in California therefore are more open to taking on additional business, he said…(more)