For many homeowners on the Central Coast, home insurance rates are increasing or their insurance companies are leaving the state altogether.
“It's just a really weird sinking kind of a feeling like you don’t know what's going to happen,” Laura Nuzzo, a San Luis Obispo County resident, said.
Nuzzo has home insurance with State Farm, but now is rethinking her provider after a huge increase.
“They didn't even tell me they were just hoping I didn't notice because it's paid through an escrow account,” Nuzzo said.
Her rates went up from less than $1000 to just over $5000 a year.
When she called to find out about the abrupt changes they were vague with their response.
“They said sorry it's happening to everyone and you're lucky to have a policy basically,” Nuzzo said.
As a single mom, she tells KSBY she's already having a hard time and to provide the best she can for her three kids.
“An increase like this is significant," Nuzzo said. "I don't know what I can shift around or do to be able to meet the bill at this point."
Nuzzo is just one of many people in California whose insurance rates are skyrocketing or just being dropped altogether.
“Climate change is happening here. We're experiencing it," said Jeff Prostovich, a broker associate for Better Homes and Gardens Real Estate. "It's affecting our weather, it's affecting natural disasters and everybody is shouldering the cost."
Prostovich tells KSBY insurance companies are leaving California because of the losses they've suffered as a result of floods, fires, and other natural disasters.
“It's just not worth them doing business,” Prostovich said.
Other insurance companies have already left, affecting thousands across California.
“This is happening across the country,” Prostovich said.
“They have to pass on increases to the consumer in higher premiums or they have to drop out of the state,” Prostovich said.
Even if they’re not being dropped, some homeowners are seeing an increase in their rates because of the high cost of building materials.
Prostovich says it's gone up since the pandemic.
“Lack of materials and labor costs and material cost and inflation,” Prostovich said.
If you are a homeowner who's been dropped, local brokers say to shop around for other insurance companies, talk to a local broker, and weatherproof your home by hardening the exterior of the house in case of a fire.
“We used to recommend that they shop for insurance during the transaction and now we are suggesting they shop for insurance in their first week of shopping for a home,” Prostovich said.
When you're looking to buy a house, local realtors also suggest finding out whether or not it's in a high-risk fire zone. This website will give you this information for each location.
