Hartford is latest to pause new homeowners coverage

Home insurance options in California will soon shrink further as another company pauses coverage in the state.

The Hartford Financial Services Group Inc. will stop offering new California homeowners policies starting in February. Included in the cut is Hartford’s joint program with AARP. Those with existing policies, meeting the company’s underwriting guidelines, will continue to be renewed.

The California-specific change is due to “unique challenges that have required us to reconsider the viability of writing new homeowners’ business in the state,” according to a statement from Hartford. “Based on these challenges and our analysis of the trends, we have decided to stop offering new homeowners policies.”

A spokesperson for Hartford said the company needs the ability to price homeowners’ insurance appropriately for the risks they protect against.

California Proposition 103 requires government approval for insurance rate increases.

“Rate adequacy and regulatory reform are both critical to bringing stability back to the market,” the Hartford spokesperson said.

Hartford is just the latest addition to the list of companies restricting home insurance coverage in California, some citing wildfire risk. Homeowners have struggled in recent months to find coverage for their homes as the list of insurers dwindles and policy prices rise.

Since 2022, seven of the top 12 insurers in California’s homeowners market have paused or restricted new business, according to the California Department of Insurance, including State Farm and Allstate.

Hartford holds about 0.9% of California’s homeowners insurance market share, according to 2022 data from the Department of Insurance.

To combat the ongoing insurance crisis, California Insurance Commissioner Ricardo Lara developed the Sustainable Insurance Strategy, requiring insurance companies to write at least 85% of their statewide market share in high wildfire risk areas. The strategy is set to be implemented by December.

The statement from Hartford explaining the pause noted the company will be watching Lara’s efforts closely.

Hartford will continue writing other insurance products in California, including business insurance and personal auto policies, according to the company.

“Rate adequacy and regulatory reform are both critical to bringing stability back to the market.” Hartford spokesperson