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Why Is It So Hard To Get Insurance In California?


In this video, Sam reviews why the current insurance market in California is facing significant challenges. Owners are facing cancellation notices and it is extremely difficult to find new policies.

Prop. 103 - The Unintended Consequences

This issue stems from Proposition 103, passed in 1988, which aimed to protect consumers and create a competitive insurance marketplace by regulating rates. Despite its good intentions, Proposition 103 has led to unintended consequences, such as long approval times for rate increases and insurance companies withdrawing from the market.

As a result, limited competition has caused insurance premiums to soar and in some cases it is nearly impossible to find insurance. For example, State Farm just cancelled 75,000 policies earlier this month and now those owners are overloading other companies with their requests.


If you're one of our customers, please contact us and we can help connect you with insurance agents who can still write policies in California. Please note, we are not a licensed insurance company, so all we can do is connect you with someone who can help.

Keep in mind, adjusting rent to keep up with market rates and rising maintenance costs is crucial. That’s why we send you our personalized recommendations every year to help ensure you are financially protected while minimizing tenant turnover.

Owning Real Estate Is Still A Great Investment

Despite these challenges, the long-term benefits of owning rental property in California remain strong. Home values and rents have appreciated significantly which continues to make real estate a valuable investment. Remember to view your investments holistically and recognize the overall performance. Ultimately, look at the big picture and don’t be disheartened by temporary setbacks.