I never imagined I’d be penning this as a proud homeowner in Los Angeles.
Last week, I got a notification from Liberty Mutual saying they would cancel my condo insurance policy effective October 3rd.
No real explanation was provided related to my claims history or finances; it just seemed to be a sweeping decision as part of their broader withdrawal from California.
My building is well-kept and has been seismically retrofitted for potential earthquakes. I thought I had all my bases covered. Still, I’m caught in the wave of an insurance crisis that’s hitting residents hard—especially those like me who are just trying to do the right thing.
As a single woman, a legal permanent resident, and someone who’s worked extremely hard—often clocking 70-hour weeks—to purchase this home, I’ve never missed a mortgage or HOA payment. This situation is beyond frustrating.
I moved to California just over a decade ago, chasing the same dream that many aspire to: success, stability, homeownership, and building a future in a vibrant city filled with opportunities. Back home and in other places I’ve lived, I saved diligently while living in shared accommodations and even squats. I bought my first home, a condo in Mar Vista, in 2016. It’s ideally situated near Venice Beach, and it felt like the perfect place to establish my roots.
We officially moved in on Halloween, and I’ve had insurance since before we closed on the condo. I pay over $1,300 annually to safeguard my largest asset.
I have invested significant time and money maintaining my home. I went on vacation to renovate the kitchen and bathroom, retiled the fireplace, put in new baseboards, replaced carpet with hardwood flooring, and upgraded fixtures. Then, I painted everything to enhance what is arguably the biggest financial commitment of my life.
Throughout my decade of ownership, Mar Vista has experienced ongoing revitalization, and I’ve been fortunate to see an increase in my investment’s value.
Now, with the nation’s largest insurance company pulling out, I’m left scrambling for new coverage in a notoriously tough market for homeowners.
In an email from Liberty Mutual, they stated, “California’s insurance market has faced considerable volatility due to catastrophic weather and wildfires, resulting in substantial losses for insurers.”
They cited inflation and rising construction costs as reasons for non-renewal, asserting that “the primary motive for Liberty Mutual’s decision is to diminish its exposure to risk, particularly in areas prone to disasters such as California.”
“If you have any questions or wish to discuss other coverage options, please let us know,” the email concludes.
I’ve reached out to the company multiple times, but haven’t received any responses about those “alternative coverage options,” let alone any comment on my situation.
This isn’t just my story—it’s happening to many others. In Los Angeles and throughout California, insurance companies are not renewing policies at alarming rates due to wildfire risks, inflation, and other economic factors.
But here’s the thing: I reside in Mar Vista, which is largely a flat, residential area, not known for fire risk.
According to the U.S. Geological Survey, there’s about a 60% likelihood that an earthquake of 6.7 magnitude or higher could occur in Southern California within the next 30 years. The California Earthquake Authority notes there are around 15,000 fault lines across the state, with a 99% chance that a major quake will hit within three decades.
This reality makes reliable insurance coverage even more crucial for homeowners like me.
The timing of this cancellation couldn’t be worse. With rising mortgage rates and soaring everyday costs, the added stress of finding affordable coverage is overwhelming.
I’ve already started reaching out to brokers, but the quotes I’ve seen are significantly higher than what I currently pay. Some companies aren’t even writing new condo policies in parts of L.A.
Plus, additional charges for earthquake coverage complicate things further.
I understand businesses must manage risk. However, when large insurers leave in droves, hardworking individuals like me feel abandoned by the state that we invest in and cherish.
We contribute our taxes, pay our mortgages, adhere to community rules, and engage in everyday acts of kindness. We should be able to count on protection for our greatest investments.
I share my experience because I know I’m not alone. For now, I’m taking proactive steps, contacting every agent I can find, scrutinizing policies, and refusing to let this situation define the home I’ve worked so hard to achieve.
Yet, Californians deserve more than this cycle of anxiety amidst rising costs.
My advice to anyone in a similar position is to start your insurance search early, document everything meticulously, and consider reaching out to the California Department of Insurance.
The insurance crisis in Los Angeles and California isn’t merely a business issue—it’s about housing stability, socioeconomic challenges, and it affects the real working people building their lives here, making California the great place it once was celebrated for being.
