SIDE, A THIRD INSURANCE CARRIER IS NOW LIMITING POLICIES FOR NEW CUSTOMERS. THE LATEST ONE -- FARMERS INSURANCE. AMA: WE REPORTED THAT STATE FARM'S TOP-SELLING NEW POLICIES IN CALIFORNIA ON SATURDAY, ANOTHER MAJOR CARRIER ALLSTATE, CONFIRMED IT AND NEW POLICIES IN THE STATE LAST YEAR. DAN: MICHAEL FINNEY IS HERE WITH THE LATEST. MICHAEL: THE GOOD NEWS, ALL THREE COMPANIES ARE STILL SERVING EXISTING CUSTOMERS, AND THEY ARE MORE THAN 100 INSURANCE COMPANIES ISSUING NEW-HOME POLICIES IN CALIFORNIA. NOW THE BAD NEWS -- IF YOU ARE LOOKING FOR A HOMEOWNERS POLICY, YOU WILL HAVE TO REALLY SHOP AROUND, AND IF YOU LIVE IN A FIRE-PRONE AREA, GOOD LUCK. THE THREAT OF WILDFIRES HAS GROWN EVERY YEAR, RIPPING THROUGH FORESTS, SCURRYING HILLSIDES, DESTROYING WHOLE COMMUNITIES. >> IT'S PURELY BAD. MICHAEL: AMID THE DEVASTATION, THOUSANDS OF HOMEOWNERS AND DISASTER ZONES LOST THEIR COVERAGE OVER THE YEARS. COMPANIES REFUSED TO RENEW MORE THAN 167,000 HOMEOWNER POLICIES LAST YEAR ALONE. I DON'T KNOW OF ANYBODY WHO HAS BEEN. >>. >> YOU ARE DONE. >> I HAVE BEEN WITH THEM ALMOST 40 YEARS AND HERE THEY ARE CANCELING MY INSURANCE. MICHAEL: THEN LAST WEEK STATE FARM INSURANCE CALIFORNIA'S LARGEST CARRIER STOPPED ISSUING ALL NEW HOMEOWNER POLICIES IN THE STATE AT LEAST TEMPORARILY. THE COMPANY CITED A GROWING THREAT OF NATURAL DISASTERS, AS WELL AS RISING CONSTRUCTION COSTS AND INFLATION. >> THE ANNOUNCEMENT IS DEFINITELY NOT HELPFUL NEWS. MICHAEL: NOW ALLSTATE INSURANCE, THE FOURTH-LARGEST CARRIER IN CALIFORNIA, JUST CONFIRMED IT HAS STOPPED ISSUING NEW HOMEOWNER POLICIES LAST YEAR. ALLSTATE ALSO BLAMED WILDFIRES AND HIGHER COSTS, SAYING, QUOTE, "THE COST TO ENSURE NEW HOMEOWNERS IN CALIFORNIA IS FAR HIGHER THAN THE PRICE THEY WOULD PAY FOR POLICIES." >> WE HAVE TO KEEP IT IN PERSPECTIVE. I AM ENCOURAGING CONSUMERS TO STAY CALM. MICHAEL: THIS CONSUMER ADVOCATE SAYS MORE THAN 100 CARRIERS STILL OFFER NEW HOMEOWNER POLICIES, THOUGH THEY ARE GROWING MORE WEARY ABOUT RISKS IN CALIFORNIA. >> I TALKED TO INSURANCE EXECUTIVES. THEY ARE ALL WORRIED ABOUT WILDFIRES IN THE WEST. THEY DON'T TAKE BLIND RISKS ANYMORE, BECAUSE THEY CAN BUY DATA AND VACANCY THE PINE NEEDLES IN YOUR GUTTER. >> INSURANCE COMPANIES JUST CAN'T DECIDE TO NEW CUSTOMERS. MICHAEL: HARVEY ROSENFELD OF CONSUMER WATCHDOG WAS SKEPTICAL ABOUT THEIR MOTIVES FOR ENDING NEW-HOME POLICIES. >> THEY ARE TRYING TO PRESSURE THE INSURANCE COMMISSIONER TO APPROVE A SEVEN TO ANYONE -- 721 MILLION DOLLARS ADDITIONAL INCREASE IN PEOPLE'S HOMEOWNER INSURANCE PREMIUMS. MICHAEL: STATE FARM SAYS, "WE TAKE SERIOUSLY OUR RESPONSIBILITY TO MANAGE RISK, AND IT IS NECESSARY TO TAKE THESE ACTIONS NOW TO IMPROVE THE COMPANY'S FINANCIAL STRENGTH." SOURCES TELL ME FARMERS INSURANCE, THE SECOND LARGEST CARRIER IN THE STATE, IS LIMITING HOW MANY NEW CUSTOMERS IT WILL TAKE ON, UNWILLING TO ASSUME MORE OF THE WILDFIRE RISK. >> IT HAS ALREADY BEEN HARD FOR PEOPLE TO SHOP FOR INSURANCE IN THESE AREAS. MICHAEL: SHE EXPECTS THOUSAND MORE HOMEOWNERS IN FIRE-PRONE AREAS WILL HAVE TO RESORT TO BUYING INSURANCE DURING THE STATE'S FAIR PROGRAM, IT IS VERY EXPENSIVE AND PROVIDES ONLY BARE-BONES COVERAGE. >> DOUBLE WHAT WE PAID BEFORE AND YOU HAVE LESS COVERAGE. >> OVER COVERAGE IS ABOUT THREE AND A HALF TIMES MORE. >> THAN IT'S GOING TO GET HARDER BEFORE IT GETS EASIER, I FEAR. MICHAEL: HOMEOWNERS WHO CAN'T FIND A COMPANY TO ENSURE THE CAN BUY A STATE-SPONSORED FEAR INSURANCE POLICY, AS I JUST POINTED OUT, BUT THOSE ARE EXPENSIVE AND DON'T COVER AS MUCH. IF YOU HAVE TROUBLE BUYING A NEW HOMEOWNERS POLICY, GO TO ABC7NEWS.COM/7 ON YOUR SIDE.
