California homeowners weigh options in a limited insurance market

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With insurance companies dropping customers and pulling out of California, some homeowners are now going for an out-of-state solution. But that coverage may come with a risk.

KPBS reporter Tania Thorne has the story.

But in December, he received a nonrenewal notice from his insurer. The company said it was because of the fire danger. "So what we did was, we offset some of that expense by going tremendously higher with deductibles and foregoing some other coverages just to make it affordable," he said. "It just depends on every individual client, their family and their financial needs. So it really varies. But the higher of a deductible you have, the lower your premiums going to be," she said.

"If the company becomes insolvent, or goes bankrupt, and they are not able to pay out the claims that you're paying the coverage for ... as a California resident ... you are not able to go to the state to either appeal or ... fight back to get any help from the state," she said.

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