A recent analysis by LendingTree reveals that roughly one out of every 10 Los Angeles homeowners, and 10.5% of all homeowners in California, do not have home insurance. This lack of coverage is particularly concerning in the face of the state’s high wildfire risk, which has led insurance companies to withdraw from underwriting policies or limit coverage for perils like wildfires.
The rising cost of home insurance premiums in California, which have increased by 48% in the past five years, is also contributing to the high number of uninsured homeowners. Nationally, home insurance rates have gone up by 38% in the same period.
The analysis found that uninsured homes are more concentrated in less-populated parts of the state, with some counties showing much higher rates of uninsured homes compared to others. For example, in the 14 counties with the highest uninsured levels, 15% of homes are not covered, while in the 14 counties with the lowest uninsured rates, only 9% lack coverage.
The financial risk for homeowners without insurance is significant, with the median home sale prices in low-coverage counties significantly lower than in areas where insurance is more common. This highlights the importance of homeowners, especially in high-risk areas like California, securing adequate insurance coverage to protect their investment.
The findings of this analysis underscore the need for homeowners to reevaluate their insurance coverage and ensure they are adequately protected against potential risks, especially in areas prone to natural disasters like wildfires.
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