California loses 2 more property insurers in growing crisis

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Two more insurance companies are ending property insurance coverage in California, adding to the growing list of insurers fleeing the state in what has become an escalating crisis.

Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., both owned by Japanese firm Tokio Marine Holdings Inc., filed notices to California's Department of Insurance saying the companies would cease offering homeowners insurance and umbrella policies in the Golden State.

Homeowners in California are facing loss of insurance coverage and surging premiums as companies flee the state. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)

The move will impact more than 12,500 policyholders, who can expect non-renewal letters starting July 1.

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«Given the small segment of personal lines business we write and escalating costs, we cannot sustainably support personal lines coverages and do not plan to return,» Tokio Marine Holdings said in an emailed statement to Bloomberg. «We remain committed to commercial lines in California – and across the country – and supporting our agents and customers with exceptional service through this transition.»

FOX Business reached out to Tokio Marine Holdings for comment.

Property insurers are leaving California in what the state's insurance commissioner says is «a real crisis.» (iStock / iStock)

The decision is the latest blow to California property owners, as insurance companies continue to raise rates for customers or discontinue coverage.

In 2022, insurance giant AllState paused