starts right now. Thanks for joining us. I'm Jessica Aguirre and I'm Terry McSweeney. There's a new and fast growing problem for homeowners and businesses in San Francisco. Insurance companies are canceling or refusing to renew insurance policies with almost no explanation. And those affected say it's becoming nearly impossible to get another policy without breaking the bank. NBC Bay Area Sergio Quintana spoke with insurance brokers to get answers about what you need to know. If your policy is canceled. In March, San Francisco homeowner Jeremy Salterbeck got this notice from his insurance company Safeco, saying in part after careful consideration, we have concluded that we will not be able to renew your homeowner's insurance policy. He was stunned when he got a grainy drone image of his roof. As part of the explanation. They're trying to show that the presence of dirt indicates that water has pooled and dried out. Bay Area insurance broker Jerry Becerra says insurance companies have not only stopped writing new policies, they've also stopped renewing some policies, and he's had trouble finding new companies to cover his clients. I think the hardest thing, particularly for older homes, is meeting underwriting requirements. So, you know, if you've got knob and tube wiring or some other things that deferred maintenance on your property that can make the placement very difficult and expensive. He says. There's a number of reasons why companies are pulling back in California and the Bay Area in particular, because homes here are more expensive. They're also pricier to replace in the event of a fire or other disaster. The California insurance market is highly regulated, so insurance companies say they haven't been able to hike rates to keep pace with rising costs. And then there are the rising costs of natural disasters both here and around the world, Becerra says. An earthquake in Taiwan and what seems to be more frequent hurricanes in Florida and the Gulf Coast are also part of the equation as the reinsurance market changes and there's disasters around the world, that all trickles down to local insurance because that's a fixed cost for insurance companies to care to bear. If you do happen to get a cancellation notice, insurance brokers say you should react quickly. Companies are required to give you at least a couple of months notice before the policy ends. But unfortunately, broker Steve Cressey says, if you can get a new policy, it's likely going to cost you thousands of dollars more. Sometimes we've had to go to what's called excess market or non-admitted companies to find somebody's insurance. You can also dispute the reason for cancellation or fix the problems the insurer lists on your property. In homeowner Jeremy Trebek's case, he hired an independent home inspector to evaluate his roof. Safeco reversed its decision, but hasn't commented any further about why a small win in what seems like a landslide of losses for those try
