Liberty Mutual cancels California condo insurance policy after 10 years

I never expected to be saying this as a proud homeowner in Los Angeles.

Last week, Liberty Mutual notified me that my condo insurance policy will be canceled as of October 3.

The decision was not linked to any claim I had filed or any issue with the condition of my property. Instead, it appears to be part of the company’s broader retreat from the California insurance market.

My building is well cared for and has undergone seismic retrofitting to better withstand earthquake damage. I have done what homeowners are supposed to do. Still, I have found myself caught up in an insurance crisis that is bearing down on Angelenos — including taxpaying, law-abiding transplants like me.

As a single woman and lawful permanent resident who worked long hours, including 70-hour weeks, to buy this home, the cancellation feels deeply unfair. I have never missed a mortgage payment or fallen behind on my HOA dues. It feels like a real blow.

I came to California a little more than a decade ago in pursuit of the same dream that draws so many people here: stability, success, homeownership, upward mobility and the chance to build a life in a vibrant city that seemed to offer endless possibility, with a touch of glamour.

Before that, in my home country and in other places where I lived, I saved carefully for years while staying in shared houses, rented rooms and even squats. In 2016, I bought my first home: a condo in Mar Vista, a West Los Angeles neighborhood close to Venice Beach that felt like a place where I could finally put down roots.

I officially moved in on Halloween and had secured my insurance policy before closing. Since then, I have paid more than $1,300 a year to protect the most valuable asset I own.

I’ve poured so much cash and sweat into maintaining this home: Going without vacations to renovate my kitchen and bathrooms; retiling the fireplace; laying new baseboards; ripping out carpet to lay hardwood floors; new light fixtures; and painting walls, cabinets, ceilings and surfaces to further bolster the biggest financial stake I’ve ever committed to in my life.

I was blessed that in my decade of homeownership, Mar Vista has been continuously revitalized, fortuitously adding value to my hard-earned investment.

Now, one of the largest insurers in the country is walking away, leaving me scrambling to find new coverage in a market that’s already brutal for homeowners.

According to the email I received from Liberty Mutual: “The California insurance market has been particularly volatile, driven by factors like catastrophic weather events, devastating wildfires have led to billions of dollars in losses for insurers.”

The insurer lists the main reasons for the non-renewal, including inflation and rising construction costs, stating “the primary reason for Liberty Mutual’s decision is to lower its exposure to risk, especially in regions with high susceptibility to catastrophic events, like California.

“Let us know if you have any questions or want to explore alternative coverage options,” the email ends.

I’ve reached out to my insurers several times, who are yet to return my calls regarding “alternative coverage options,” let alone for comment on this story.

Sadly, this isn’t just my story.

Across Los Angeles and the Golden State, insurers are non-renewing policies at alarming rates, citing wildfire risk, inflation, catastrophic events and financial losses.

But here’s the thing — I live in Mar Vista, a mostly flat residential neighborhood not in a high-fire zone.

According to the US Geological Survey, there is around a 60% chance of a magnitude 6.7 or larger earthquake in SoCal within the next 30 years.

The California Earthquake Authority puts it at a 99% chance of a massive one of 6.7 or greater hitting the state within the next 30 years, with 15,000 fault lines across SoCal alone.

This reality makes reliable insurance coverage even more critical for homeowners like me in LA.

The timing of this non-renewal couldn’t be worse. Mortgage rates are still elevated, everyday living and gas prices are through the roof, and now I have to worry about finding new coverage that won’t break the bank — if I can even find it.

I’ve already started calling brokers, and the quotes I’m seeing are significantly higher than what I was paying. Some carriers aren’t even writing new condo policies in parts of LA right now.

And earthquake coverage costs extra.

I understand businesses have to manage risk. But when major insurers pull out en masse, it leaves hardworking people like me feeling abandoned in a state we’ve invested in and are proud to call home.

We pay our taxes, we pay our mortgages, we stop at crosswalks, we hold doors for the elderly, we tip our wait staff — we follow the rules of polite society.

We shouldn’t have to wonder if we’ll be able to protect the biggest investment of our lives.

I’m sharing my story because I know I’m not the only one.

For now, I’m doing what I can: calling every broker, reading every policy, and refusing to let this derail the home I worked so hard for.

But Californians deserve better than this constant uncertainty amid skyrocketing costs.

My advice to others in a similar situation is to start shopping around for policies early, document everything and consider reaching out to the California Department of Insurance.

The insurance crisis in Los Angeles and California isn’t just a business problem — it’s a housing stability problem, a class problem, and it’s affecting real working people trying to build lives here and make California the amazing place it was once lauded as.


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