California Homeowners Insurance Legislation Will Raise Premiums By 40% across the State

A package of homeowners insurance bills in Sacramento will lead to premium hikes of at least 40% across the state and increase the number of Californians who struggle to find coverage. Insurance companies in California are buying Reinsurance it’s a way for them to buy this type of insurance policy from another insurance company and transfer some of the financial risks to that insurance company. The premiums the insurance companies pay for this Reinsurance is unregulated, so whatever it cost them they just will pass the cost on to their policyholders and that would raise premiums 40%.