More insurance companies leaving California

RELATE COVERAGE: Home, auto insurance premiums skyrocket

Experts say inflation is a major factor.

LOS ANGELES - The list of insurance companies leaving California continues to grow.

The two latest companies - Tokio Marine America Insurance Co. and Trans Pacific Insurance Co. - filed notices to California's Department of Insurance saying they would stop offering homeowners insurance and umbrella policies in the Golden State, FOX Business reports. Non-renewal notices to more than 12,500 customers affected will start being mailed out in July.

The companies did not give a reason why they would be ceasing policies in California.

Tokio Marine and Trans Pacific join State Farm and Allstate in discontinuing coverage for California residents.

Earlier this month, State Farm announced it would be dropping thousands of California policies beginning this summer, nearly a year after announcing it would no longer accept homeowner insurance applications in the Golden State. This affects about 30,000 homeowner, rental and other property insurance policies beginning July 3 and approximately 42,000 commercial apartment policies starting Aug. 20.

Allstate announced in November 2022 that it would "pause new homeowners, condo and commercial insurance policies in California to protect current customers," the Associated Press reported in June.

Farmers Insurance has announced it would cap its homeowner coverage policies each month.

Both State Farm and Allstate pointed to increased wildfire risk, soaring inflation, and other challenges that factored into their decisions.

Additionally, four Kemper Corp. subsidiaries — Merastar Insurance, Unitrin Auto and Home Insurance, Unitrin Direct Property and Casualty, as well as Kemper Independence Insurance — will no longer renew preferred home and auto insurance policies in California

The four companies all cited a "nationwide restructuring decision" by their parent company as the reason behind the move.