Another Home Insurance Provider Reduces Coverage in California
SafeCo will cease insuring condos, rentals, or boats beginning in 2026.
Another residential insurance provider has opted to reduce its offerings in California by stopping new policies for condos, rentals, and boats starting next year.
SafeCo, which is a subsidiary of Liberty Mutual based in Boston, has announced its decision to stop writing new insurance plans for smaller coverage options in California over the next two years, with confirmation coming on December 20.
As of January 1, 2025, SafeCo will no longer issue new policies for condos, renters, and watercraft.
The insurance company will also phase out certain specific home products offered by some of its numerous underwriting firms, while still providing home insurance in California, as stated by a company representative.
“In response to the growing risks and volatility, we are establishing a sustainable pathway in California by streamlining our product offerings and concentrating on areas where we can excel in the long term,” a company spokesperson informed The Epoch Times.
This shift will focus SafeCo’s California operations on core products such as auto, home, landlord, and umbrella insurance, while decreasing the overall range of offerings, according to the spokesperson.
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“With this revised approach comes the challenging decision to phase out several smaller lines of business and products in California over the upcoming two years,” according to the spokesperson. “Many of these lines have not yielded favorable results over the last decade.”
From January 1, 2026, SafeCo will also discontinue new policies for specialty vehicles, motorcycles, and standard vehicles, as confirmed by the company.
Additionally, the company will end the renewal of existing policies for smaller products, including condos, rentals, boats, motorcycles, and standard vehicles in 2026.
“We remain dedicated to the California insurance market and are confident that our actions will pave the way for a more sustainable future while fulfilling our obligations to our agency partners and customers,” the spokesperson stated.
Californians have faced severe challenges in recent years due to significant increases in home and auto insurance rates.
Many residents have experienced losing their policies entirely as companies pull out of the state, citing heightened fire hazards and California’s complex insurance regulations.
The marina in Wilmington, Calif., on Oct. 27, 2021. SafeCo will stop writing new insurance policies in California for condos, rentals, and watercraft starting Jan. 1, 2025. John Fredricks/The Epoch Times
Californians can now acquire policies for condos and rentals from the company, with manufactured home policies set to be available starting March 1, 2025.
