Published: May 2026 | Category: California Insurance News | Tags: Safeco, Condo Insurance, California, Non-Renewal, Liberty Mutual
If you own a condo in California and are insured through Safeco, you may have already received — or will soon receive — a non-renewal notice. You’re not alone. Safeco (a Liberty Mutual company) has begun non-renewing all condo and renters insurance policies statewide, affecting approximately 88,000 policyholders across California.
Here’s everything you need to know about what’s happening, why it’s happening, and what to do next.
What Is Safeco Doing?
Safeco announced in late 2024 that it would be pulling out of California’s condo and renters insurance markets. The rollout happened in two phases:
- January 1, 2025: Safeco stopped writing new condo, renters, and watercraft policies in California.
- January 1, 2026: Safeco began the formal non-renewal process for all existing condo and renters policies statewide — including both Safeco-branded and Liberty Mutual-branded policies.
In April 2026, Liberty Mutual officially retired the Safeco brand. Going forward, all remaining Safeco products will be sold under the Liberty Mutual name.
Why Is Safeco Leaving the Condo Market in California?
Safeco’s exit is part of a broader, well-documented trend of insurance carriers pulling back from California. Several major factors are driving this:
1. Wildfire Risk Is Rising California has experienced increasingly frequent and devastating wildfires. Insurers argue the financial risk of covering properties — even condos in urban and suburban areas — has become untenable under current rate structures.
2. Regulatory Constraints on Rate Increases California’s insurance regulations, particularly under Proposition 103, have historically made it difficult for insurers to quickly raise premiums to reflect actual risk. Many carriers say they cannot price policies profitably in the current environment.
3. Strategic Refocus Safeco/Liberty Mutual stated they want to focus their California operations on core products: auto, home, landlord, and umbrella insurance. Condo and renters products were deprioritized.
Are You Affected? Here’s How to Tell
You’re affected if:
- You have a Safeco HO-6 condo policy in California
- You have a Liberty Mutual condo or renters policy in California
- Your policy renewal date falls after January 1, 2026
California law requires insurers to provide at least 75 days’ written notice before non-renewal. If you haven’t received a notice yet, check your mail and email carefully — it may already be on its way.
What Should You Do Right Now?
Don’t panic — but do act quickly. Here are your next steps:
1. Read Your Non-Renewal Notice Carefully
Understand exactly when your current coverage ends. You do not want a gap in coverage, especially if your HOA requires it or you have a mortgage lender requiring proof of insurance.
2. Start Shopping for New Coverage Immediately
The California condo insurance market is competitive but tightening. Start getting quotes at least 60 days before your policy expires. Some top-rated alternatives for California condo owners in 2026 include:
- Nationwide — Rated among the best for condo coverage in California, with strong claims handling and flexible unit-improvement coverage.
- Travelers — One of the more affordable options, averaging around $414/year for condo coverage.
- State Farm, CSAA, and other regional carriers — Worth comparing based on your specific ZIP code and condo type.
3. Consider the California FAIR Plan (Last Resort)
If you’re in a high-risk area and struggle to find private coverage, California’s FAIR Plan provides basic fire and hazard coverage. Note: FAIR Plan coverage is limited, so pair it with a “Difference in Conditions” (DIC) policy for broader protection.
4. Contact Your HOA
Your condo association’s master policy may cover the building’s exterior and common areas, but your HO-6 policy covers your interior, personal property, and liability. Make sure there’s no gap between the two.
5. Work With an Independent Insurance Agent
An independent agent (like Starwest Insurance) can shop multiple carriers on your behalf and find the best coverage at the best price — especially important right now when the market is shifting fast.
Can You Appeal Safeco’s Decision?
Technically, yes — but in this case, the non-renewal is a blanket statewide withdrawal, not a decision based on your individual property or claims history. This means appeals are unlikely to succeed.
That said, you have rights under California law:
- You can file a complaint with the California Department of Insurance (CDI) if you believe the non-renewal process wasn’t handled correctly.
- You can call the CDI at 1-800-927-4357 or visit insurance.ca.gov to file a complaint or ask questions.
The Bigger Picture: California’s Insurance Crisis
Safeco’s exit is not an isolated event. In recent years, major carriers including State Farm, Allstate, Farmers, and now Safeco/Liberty Mutual have all either stopped writing new policies or begun non-renewing existing ones in California.
The root causes — catastrophic wildfire losses, regulatory pricing constraints, and rising reinsurance costs — are systemic. California regulators and the insurance industry are actively negotiating reforms, but meaningful change will take time.
As a California condo owner, the best thing you can do is be proactive, shop early, and work with a knowledgeable local agent who understands the current market.
How Starwest Insurance Can Help
At Starwest Insurance, we specialize in helping California homeowners and condo owners navigate this challenging insurance landscape. If you’ve received a Safeco non-renewal notice — or want to get ahead of it — we can:
- Shop dozens of carriers to find you the best available coverage
- Explain your options in plain language
- Make sure you never have a gap in coverage
📞 Call us today or get a free quote online. Don’t wait until your policy expires.
James Banh Text / Call 714-867-7799
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