Liberty Mutual is the latest insurer to stop offering fire insurance in California. Starting last fall and continuing through November, the company will not renew “dwelling fire insurance” for about 17,000 policyholders.
Dwelling fire insurance covers damage to the home’s structure, not personal belongings. It’s commonly used by landlords and vacation homeowners. State Farm is also ending coverage for 30,000 homeowners in California, including those in high-risk fire areas.
Critics argue that frequent changes in insurance policies are leaving homeowners uncertain about their coverage. Larry Langford of West Sacramento, who is losing his insurance in two weeks, expressed frustration, noting that his policy was canceled for reasons unrelated to fire risk.
Liberty Mutual stated that their decision to end these policies is due to outdated technology, not fire risks. They explained that they are retiring old systems used for managing these policies.
Amy Bach, Executive Director of United Policyholders, said that this shift is difficult for consumers, who feel they are losing their insurance through no fault of their own. She also pointed out that new technologies, like drones and AI, are being used to assess fire risks and set insurance rates.
If your insurance is canceled, Bach advises shopping for a new policy within 75 days and consulting with a knowledgeable agent.
Liberty Mutual still offers dwelling fire insurance in California under the Safeco Insurance brand. This change affects about 1% of their total personal insurance policies in the state.