More insurance companies drop California policies
SACRAMENTO, Calif. (KION-TV) -- Both Tokio Marine America Insurance Co. and Trans Pacific Insurance Co.--subsidiaries of Tokio Marine Holdings Inc.--have announced that they are withdrawing their personal and homeowner insurance umbrellas in California, according to the state's Department of Insurance (CDI).
According to the CDI, the companies provide insurance policies to 12,556 homeowners worth $11.3 million in premiums. The company also insures 2,732 personal umbrella policies worth $400,000 in liabilities.
Nonrenewal notices will go out to current customers beginning July 1, and the filings will take place next year.
"Given the small segment of personal lines business we write and escalating costs, we cannot sustainably support personal lines coverages and do not plan to return," said Bill Procopio, Vice President of Corporate Communications. "Customers are being non-renewed as each policy comes up for renewal."
Earlier this year, Representative Adam Schiff (D-Calif.) introduced a bill in an attempt to alleviate the rising price of homeowner insurance as well as address the multiple companies who will not write new policies in the state.
In March, State Farm General Insurance Company announced that they would be discontinuing coverage for certain homes in the state, which would impact 72,000 homeowners and renters starting this summer.
This comes after the company announced last year that it will not write more policies for the state, along with other insurance companies like Allstate and Farmer's insurance.
