What you should know about 17,000 Liberty Mutual customers in California losing their dwelling fire insurance policy

In a recent development that has left many homeowners in California reeling, Liberty Mutual fire insurance company has announced that it will no longer be offering fire insurance in the state. This decision has impacted about 17,000 policyholders in California, who will not have their „dwelling fire insurance“ renewed.

Dwelling fire insurance is a type of insurance that covers fire damage to the structure of a home, rather than the contents inside. This type of insurance is often relied upon by landlords or vacation homeowners. The changes to these policies began last fall and are set to continue through November.

The decision by Liberty Mutual to discontinue these policies is not related to wildfire risks, as stated by a company spokesperson. Instead, the company cited the retirement of outdated technology used to manage these policies as the reason for the non-renewals.

Critics of the insurance industry argue that these frequent changes are leaving more homeowners in limbo. Larry Langford, a homeowner from West Sacramento, expressed his frustration at losing his insurance in just two weeks. He mentioned that his policy was not renewed due to reasons unrelated to fire risks, such as having debris-splattered yards and oak trees near his home.

Amy Bach, Executive Director of United Policyholders and a homeowner insurance consumer advocate, highlighted the challenges faced by consumers in understanding these decisions. She emphasized that insurance companies are for-profit entities and are making business decisions based on new technologies like aerial drones, AI, data mining, and risk scoring systems.

In response to these changes, Bach advised homeowners to start shopping for new policies and to get informed about their options. She mentioned that homeowners have 75 days from the time their insurance provider notifies them of non-renewal to find a new policy. Additionally, she recommended visiting their website for guidance and finding a reputable agent to assist with the process.

Despite the discontinuation of dwelling fire insurance policies, Liberty Mutual Group clarified that they still offer this coverage under the Safeco Insurance Brand in California. The impact of this decision affects about 1% of Liberty Mutual’s total personal insurance policies in the state.

As more insurance companies make similar decisions, homeowners in California are urged to stay informed, proactive, and prepared for potential changes in their insurance coverage. The evolving landscape of the insurance industry underscores the importance of being proactive and seeking out the best options for protecting one’s home and assets.