Oversaturation Can Impact Closings
Consumers all over the state are aware of the complexity of the insurance market in terms of location eligibility, specifically wildfire, flood and earthquake.
What about the areas that are not prone to wildfire, flood or earthquake?
Can there be challenges obtaining coverage?
Short answer is Yes. The climate in the insurance industry has impacted even areas that are not “high risk” due to
What does oversaturation mean?
In regards to property insurance, oversaturation means an excessive amount of policies being written in a concentrated area.
If a catastrophic event were to take place and only one company had policy holders in that specific neighborhood, the amount of total losses could be detrimental to the financial strength of the company. For example, ABC Insurance insures five homes on the same street, they could potentially decline the sixth home due to oversaturation.