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What is "Hardening" in Insurance and how does it affect your home and auto insurance?

In addition to companies pulling out of California, renewing Insurance premiums have skyrocketd by 25% -45% on home and auto premiums writes Jonathan Edewards

This year we have received numerous calls and messages from clients and prospects who have been shocked by the increase in their home and auto insurance premiums. However, at Citrust, we have been advising everyone that if your current insurance company is offering renewal, you should probably accept that renewal offer

For many types of insurance in the state of California, the insurance industry is currently in a "Hard Market." During a “Hard Market,” insurance companies respond to higher-than-anticipated claims by raising premiums, reducing coverage, canceling (non-renewing) existing policies, and declining to write new business. The situation in California is most acute for personal home & auto insurance, and commercial property, auto, and umbrella insurance. (Florida is even worse) The insurance marketplace has changed as a result of many different factors, including COVID, increase in thefts, increase in the cost of auto parts and building materials, and big weather-related disasters. Rate increases of 30% to 200% are common, and others are getting their policies non-renewed altogether. You may have heard recently in the news that State Farm and Allstate have closed the entire state of California to new homeowners policies; that's also true of other companies, and it also applies to auto insurance, too. Here’s a news video that explains what’s going on with auto insurance: And here are some news articles describing various factors behind a “Hard Market,” especially property insurance, but some of the factors also apply to other types of coverage, too:

Unless there's a very strong reason to make a change, we're typically telling folks to hang on to their current home & auto policies, and let's talk about it again in a few years when hopefully the market has softened and companies are more willing to write new business.

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