Nikki Dobrin, a Los Angeles homeowner, received notice from Liberty Mutual that her condo insurance policy would be canceled effective October 3, a decision she attributes to the insurer's broader retreat from the California market. The cancellation came without specific reasons related to her claims history or property condition, which she states has been maintained and seismically retrofitted.
Dobrin, who has owned her condo in the Mar Vista neighborhood since 2016, expressed her dismay, calling the situation a "kick in the teeth" after years of hard work and financial commitment to her home. She pays over $1,300 annually for her insurance, which she has maintained since before purchasing the property.
Liberty Mutual cited "catastrophic weather events," "devastating wildfires," inflation, and rising construction costs as factors contributing to significant financial losses for insurers. The company stated its decision was to "lower its exposure to risk, especially in regions with high susceptibility to catastrophic events, like California."
However, Dobrin points out that Mar Vista is not located in a high-fire zone, and the primary risks for Los Angeles homeowners are earthquakes. The U.S. Geological Survey indicates a roughly 60% chance of a magnitude 6.7 or larger earthquake in Southern California within the next 30 years, with the California Earthquake Authority reporting a 99% chance of such an event statewide within the same timeframe.
The timing of this cancellation adds financial strain for homeowners already dealing with elevated mortgage rates and high living costs. Dobrin has begun seeking new coverage and is encountering significantly higher quotes, with some carriers reportedly not offering new condo policies in parts of Los Angeles.
Dobrin shared her experience to shed light on a broader insurance crisis affecting homeowners across California. Insurers are increasingly non-renewing policies, citing wildfire risk, inflation, and financial losses. This trend is creating uncertainty and housing stability problems for residents who have invested in the state. Dobrin advises others in similar situations to start shopping for new policies early, document everything, and consider contacting the California Department of Insurance.