By Michele Allyn
President 2024
Santa Barbara Association of Realtors

2024 was a pivotal year for our insurance market. Insurance companies, large and small, have left the
The state will not renew current policies or has simply stopped accepting new homeowners insurance policies.
Here in Santa Barbara County, we have been particularly hard hit given that large swathes of our county
are designated as high or very high fire zones. With so much bad news circulating about the disaster
Insurance situation, what can a homeowner or business owner do?

Throughout 2024, California Department of Insurance Commissioner Ricardo Lara attempted
to alleviate the insurance crisis. He negotiates a “historic agreement” which will allow insurance companies
companies should use new technology tools to set rates, but only if those companies insure more homes in the event of wildfires
areas. Will this “historic deal” help the Santa Barbara region?

It’s hard to know. Currently, the way insurance companies determine risk is based on the analysis of historical data,
in other words, they use past events and statements to provide insight into the frequency and severity of problems.
risks. If this new situation becomes a reality, insurance companies will use catastrophe models to assess the consequences.
risk exposures in a portfolio. This means that insurance companies will use models to estimate future
catastrophic events when evaluating your property.

What I explained above is just an overview of the “historic deal”, but I think it’s better if you hear it.
directly from the office of the Ministry of Insurance to understand the new policy requirements, call an expert
information and ensure that your concerns are addressed.

I would like to personally invite you to “Let’s Talk Insurance: Public Community Meeting” on Wednesday,
November 13 from 5:30 p.m. You can register for this FREE event at www.sbaor.org.

Michele Allyn is the owner and manager of Allyn & Associates Real Estate and Lending, a real estate brokerage and mortgage company serving Santa Barbara, California’s Central Coast, Ventura, Riverside, San Diego and Greater Los Angeles County. Michele has been a member of the Santa Barbara Association of Realtors since 1973 and currently serves as President of the Board of Directors. Contact Michele at 805-895-5101 or [email protected].