Rising Insurance Rates Making It Brutal For Apartment Owners To Afford Coverage
CALIFORNIA RENTAL HOUSING ASSOCIATION IS ASKING THE CALIFORNIA INSURANCE COMMISSIONER TO TAKE NECESSARY STEPS TO STABILIZE THE MARKET DUE TO RISING INSURANCE RATES.
SACRAMENTO, CA – The California Rental Housing Association (CalRHA) is asking California Insurance Commissioner Ricardo Lara to take the necessary steps to help stabilize the insurance market. Each year California property owners are seeing a steady increase in insurance premiums as insurers cancel policies or leave the market. These increased costs result in higher operating costs for rental housing providers, which ultimately negatively impact the rental housing market with increased costs being passed along to renters and property owners falling short on funds needed to make improvements.
“California’s housing crisis continues to get worse each year,” said Earle Vaughan, President, California Rental Housing Association, “And our members take our commitment to provide safe, well maintained housing for more than 675,000 Californians seriously. However, with rising operating costs, like home insurance, we’re taking a heavy hit. We urge Commissioner Lara to support state and local funding for wildfire mitigation, ensure the FAIR plan has adequate reserves and reinsurance to cover losses, and speed up the adjudication of insurance rate filings.”
These necessary steps will help ease the burden of cost and help make housing more affordable in high costs areas. With adequate reserves on hand and reinsurance to cover losses, this will help the plans to be able to offer limited options with the very lowest rates possible. Expedited insurance rate filings will help improve regulatory certainty and make it practical for insurers to do business in California.
CalRHA does not claim to be experts in insurance rates, but over the last few years with steady rate increases, members continue to see the impacts in their properties.
“We need a break. We need to see insurance rates level off,” added Vaughan, “And we need the Commissioner’s support to make these things happen.”
About the California Rental Housing Association
The California Rental Housing Association represents 24,000+ members totaling more than 675,000+ units, made up of small, medium, and large rental housing owners throughout the State of California. Our purpose is to advocate in the best interest of the rental housing industry and collectively address industry needs.
Media Contact: Julie Stephens, 323-301-6646, julie@elevatepublicaffairs.com