Los Gatos resident Rob Stump never knows when he might get that dreaded insurance company call. Stump, who lives in a home nestled along one-way winding roads in the tree-covered Los Gatos hillside, needs wildfire protection — but he doesn’t know if State Farm will renew his coverage next year as major insurers abandon California.
Stump’s insurance, which costs about $2,055 a year, expires in November. His policy will likely be one of the more than 1,200 in the Los Gatos area and 30,000 statewide that State Farm won’t renew. That’s unless state legislation allows it to raise rates in line with inflation and increased catastrophe risk in a hotter, drier climate, according to State Farm data and statements . It’s a statewide dilemma for homeowners in high fire risk areas, forcing many to look for protection through the California FAIR plan. The state-syndicated program is pricier insurance that only covers fire as a last resort for people who can’t get coverage elsewhere.
Stump, who lives in a rustic neighborhood of about 60 homes, isn’t the only one affected. His neighbor Jon Witty had to switch from Nationwide Insurance to the FAIR plan for his Lake Tahoe home a few years ago. The change hiked his premium from $793, which initially included fire protection, to $6,266 after joining the FAIR plan to protect against fire loss in addition to his standard plan…