How Global Companies Drive The Home Insurance Crisis In California Wildfire Zones

California enjoyed a comparatively mild wildfire season in 2019, but it wasn’t enough to save Bobbi Pimentel’s homeowners’ insurance policy.

Pimentel and her husband, who live in a rural area 30 miles east of Redding, got the dreaded notice in late November: Horace Mann Educators Corp., which has insured their property for 13 years, wouldn’t renew their policy.

Pimentel, who’s still looking for new coverage, fears her premiums could triple, costing her thousands of dollars.“I just don’t understand how they can do that,” said Pimentel, 77. “They don’t mind taking our money but they’re not covering anything.”

A company spokeswoman wouldn’t discuss Pimentel’s case but said Horace Mann has paid out $157 million in California wildfire claims since 2017.

The insurance crisis in California wildfire country is showing few signs of abating. Rural residents are losing coverage, rates are shooting up and experts say the problem defies easy remedies.