Another residential insurance company has decided to reduce its services in California starting from the upcoming year, ceasing to offer new policies for condos, rentals, and boats in the state.
SafeCo, a subsidiary of the Boston-based Liberty Mutual company, confirmed on December 20th that it will halt new underwriting plans for small products in California over the next two years. Beginning January 1, 2025, SafeCo will stop writing new policies for condos, renters, and watercraft in the state. A representative of the company stated that they will also cease underwriting certain specific independent property products, with exceptions for other independent properties.
The company spokesperson told Epoch Times, “In this increasingly risky and volatile period, we are establishing a sustainable path in California through streamlining product offerings and investing in areas where we can succeed in the long term.” The spokesperson mentioned that this change involves focusing SafeCo’s California business on core auto, independent home, landlord, and umbrella insurance products, while reducing the overall portfolio of the company.
The spokesperson said, “Under this new strategy, we have had to make tough decisions to discontinue several smaller businesses and products in California over the next two years. Many of these product lines have underperformed over the past decade.”
The company confirmed that starting from January 1, 2026, SafeCo will also stop underwriting new policies for specialty vehicles, motorcycles, and standard vehicles. As for existing policies, the company will also cease renewing smaller products including condos, rentals, yachts, motorcycles, and standard vehicle policies starting in 2026.
In recent years, California residents have been heavily impacted by significant increases in home and auto insurance premiums. Some residents have completely lost their policies as several companies have been withdrawing services from California citing higher fire risks and the state’s complex insurance regulations. In 2023, Governor Newsom issued an executive order for the insurance commissioner to address the crisis, with the California Insurance Department hoping to lure insurance companies back to the state.
After ceasing new policies in May 2023, Farmer’s Insurance announced on December 14 that it will resume underwriting in California, providing a glimmer of hope in what had been a challenging insurance market. Californians can now purchase policies for condos and renters from the company. Starting March 1, 2025, the company will also offer mobile home insurance.