Liberty Mutual cancels California condo insurance policy after 10 years

Key Points:

• Liberty Mutual is canceling a Los Angeles homeowner's condo insurance policy effective October 3, as part of a broader insurer withdrawal from California, citing wildfire risk, inflation, and catastrophic events without specific reasons tied to the property or claims history.
• The homeowner, a single woman and lawful permanent resident, has diligently maintained and improved her Mar Vista condo, a neighborhood not in a high-fire zone, highlighting the challenges faced even by responsible owners in the current insurance climate.
• The California insurance market is volatile due to increasing catastrophic weather events and financial losses for insurers, leading to widespread non-renewals and significantly higher insurance quotes for homeowners.
• Earthquake risk remains a significant concern in Southern California, with a high probability of a major quake in the next 30 years, making reliable and affordable insurance coverage essential for residents.
• The insurance crisis in California is affecting housing stability and affordability, leaving many homeowners scrambling for coverage amid rising costs and limited options, prompting calls for early policy shopping and engagement with the California Department of Insurance.