It\u2019s no secret that California is suffering through a severe drought. And the lack of rainfall has created intense fire risks in some areas. As a result, nervous insurers are keeping a close eye on those risks and homeowners insurance rates are spiking across the state.<\/p>\n
In the past, curb appeal, crime rate and quality schools were the most important factors buyers considered when searching for a home. But now, with yellowing lawns, dying plants and shrubs, a new investigation has found that other factors have popped into the equation, influenced by the drought and longer, more destructive fire seasons.<\/p>\n
Homeowners insurance<\/a>, once a less significant part of the household budget, has now moved to the forefront of monthly bills for some people. For example, residents in some communities have reported their rates almost tripling while insurance companies are canceling other policies altogether, leaving homeowners unprotected.<\/p>\n According to William Cunningham, a homeowner residing in a small heavily-wooded subdivision in Placer County named Alpine Meadows, his homeowners insurance nearly tripled since 2013. Cunningham’s annual premium shot up from $735 in 2013 to over $1,600 last year.<\/p>\n This year Liberty Mutual said it wouldn’t be renewing his policy. Cunningham had to find another insurer and now pays $1,900 dollars a year to Lloyds of London, a company known for high premiums and an exclusive client list. But, at least, he\u2019s insured.<\/p>\n