Wildfires have evidently been driving more Californians into the surplus lines market, pushing up homeowners surplus premium volume to more than $122 million in 2018, according to the Surplus Line Association of California.

“We have seen over the last five years an increase in homeowners every year,” said Ben McKay, executive director of the SLA-Cal.

The group reported 49,370 transactions for 2018 – that’s new policies, renewals, endorsements and other items. There were 30,500 transactions reported in 2014.

“It’s almost a doubling,” McKay said.

It is believed that severe wildfires over the last few years are making it harder for homeowners in high risk areas to find coverage in the admitted market, which is driving them to the state’s FAIR Plan or into the surplus lines market.

McKay noted that the vast majority of the state’s roughly 14 million homeowners policies are still sold by admitted carriers.

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