(KRON) — In the East Bay, Orinda is one of the cities at the top of the list in terms of insured households scheduled to be dropped by State Farm this summer.
It’s not only property owners facing challenges finding coverage. This insurance crisis is impacting the real estate industry.
“I think our government has to get involved. It’s a problem people need to have insurance for their homes,” said Coldwell Banker Realtor Roberta Calderon
Calderon is a realtor based in Orinda — a city at the top of the list of State Farm customers scheduled to be dropped this summer. Calderon is not only helping clients navigate the home insurance crisis.
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“I just got a text from my neighbor the other day he is one of the many homes that’s been dropped by State Farm,” Calderon said. “I advised him to speak to a reputable broker locally and sort it out with him and get on the list for the fair plan before his termination.”
The fair plan is available to California residents and businesses in urban and rural areas who cannot obtain insurance through a regular insurance company.
“I’m not freaking out, but I’m worried you know,” said Orinda resident David Anderson.
Anderson, a State Farm customer, is also navigating home insurance coverage options.
“The broker says I’m learning about the California fair plan and let’s talk in August. That gives us enough time to look over,” Anderson said. “When you don’t really know what a solution could be whether you just have to pay more money or whether fire danger has to go down which none of us can conceive of then you get worried because it’s really out of your control.”
Anderson is not alone.
“I was not able to get it from State Farm I was also turned down by Geico so not really sure what to do,” said Nicole, an Oakland resident.
Nicole bought a condo in Oakland last year and still searching for insurance.
“Online and everything people are just asking you know who do you have insurance with, do you have insurance,” she said. “I just don’t know for people who have single-family homes who don’t have any coverage or safety I’m not really sure what they’re supposed to do.”
Last month, State Farm, the Illinois-based company and California’s largest insurer, cited soaring costs, the increasing risk of natural disasters — like wildfires and outdated regulations — as reasons it won’t renew the policies of thousands of homes.
Back at Coldwell Banker Realty, Calderon says while deals on homes are still being made, this home insurance crisis will impact the real estate market as insurance is a key requirement to carry a mortgage for a home.