As natural disasters continue to grow in frequency and cost, a new national survey shows many homeowners lack confidence in their insurance protection. The study from Kin Insurance found that one in five homeowners believe they are underinsured and may not have enough coverage to rebuild their home after a major loss.
The findings arrive at a time when wildfires, flooding, and severe storms are putting new pressure on California’s housing market, including communities across the San Gabriel Valley. Rising premiums and higher deductibles are leaving many residents questioning whether their current policies could truly safeguard their homes.
Rising Costs Challenge Homeowners’ Security
According to the report, 18 percent of homeowners said their existing insurance would not fully cover replacement costs if disaster struck. Even more concerning, 38 percent admitted they do not know how to determine whether they have sufficient coverage.
To manage increasing premiums, some policyholders are taking financial risks. About 22 percent raised their deductible to lower monthly payments, 17 percent switched providers, and 10 percent removed optional coverages. Another 9 percent reduced their total coverage limits—moves that could save money short term but leave homeowners more vulnerable after a loss.
Despite the strain, a quarter of respondents said they have taken no steps to reduce costs, even as average homeowners insurance premiums continue to climb nationwide.
Local Impact Across the San Gabriel Valley
For homeowners in areas such as Duarte, Arcadia, and Baldwin Park, where wildfire risk and construction costs have increased sharply, the trend highlights the need for financial preparedness. Many local residents are now reassessing their coverage after years of premium hikes that have outpaced wage growth.
“The numbers don’t surprise me,” said a local insurance broker based in El Monte. “When replacement costs rise faster than coverage updates, even well-insured families can find themselves underprotected.”
The survey also revealed that nearly three in five homeowners nationwide could not afford a $5,000 deductible if their home suffered serious damage. For working families in the San Gabriel Valley, that financial gap could make recovery especially difficult after a major fire or flood.
Housing Market Feels the Strain
The effects of rising insurance costs extend beyond individual households. Nearly one-third of homeowners said they would not purchase a new home under current conditions, citing higher premiums and limited options as key deterrents.
In California, where wildfire-related claims have driven insurers to reduce coverage in some areas, the affordability challenge is reshaping housing demand. Fewer buyers are willing to take on the added expense, leading to longer listing times and tighter budgets for new homeowners.
Experts say the best way forward is education and planning. Reviewing policies annually, confirming full replacement value, and exploring state or regional insurance assistance programs can help residents strengthen their protection.
As the region faces another wildfire season, understanding insurance needs has become not just a financial decision but a matter of long-term stability for homeowners across the San Gabriel Valley.
For information on homeowners insurance and disaster preparedness, visit the California Department of Insurance at https://www.insurance.ca.gov/.
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