Major US insurer Liberty Mutual is halting all its condo insurance policies in California, impacting approximately 67,500 properties. Existing policyholders will see their coverage cease by January 2026. The company cites technical issues with its policy management system as the reason, saying it is not feasible to create a new system to support the product. Liberty Mutual’s decision is part of a broader trend in the US insurance market, with several large companies pulling out of California and others increasing rates due to worsening climate disasters. Many residents are struggling to find affordable coverage, with nearly half of Californians having been affected by rising insurance premiums or being dropped by their insurer entirely. Insurance Commissioner Ricardo Lara has recently approved regulations allowing insurers to hike rates based on the growing threat of climate change, but this has sparked concerns about potential rate shocks for policyholders. Liberty Mutual’s exit from the condo insurance market in California may exacerbate the current insurance crisis, leaving customers in a precarious position.
