California Homeowners Face Insurance Non-Renewals and Premium Increases in 2023

California is experiencing challenges in its homeowners insurance market, with approximately 1.54% of policies in Fresno County non-renewed in 2023 amid restrictions and withdrawals by several insurance companies. Insurers are imposing stringent conditions for policy renewals, such as requiring homeowners to remove roof algae or debris, causing frustration and increased out-of-pocket expenses for policyholders.

The use of aerial imagery to assess properties during underwriting and renewal processes is part of insurers' risk evaluation strategies and is noted to be less invasive than in-person inspections. Premium increases are underway, driven by the need for insurance companies to cover escalating claims costs. The California Department of Insurance is developing a "sustainable insurance strategy" aimed at stabilizing and expanding the market, although specific implementation details and timelines remain pending. Homeowners facing non-renewal notices are advised to act quickly with their agents, as delay can lead to lapses in coverage and difficulty securing replacement policies.