A California condo owner says Liberty Mutual is ending a policy held for nearly 10 years, as the insurer begins withdrawing from the state’s condo and renters insurance markets.
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A California condo owner says a nearly decade-long relationship with Liberty Mutual is coming to an abrupt end, highlighting the growing difficulties residents face in finding and keeping affordable property insurance across the state.
According to the New York Post, the Los Angeles-area condo owner recently received notice that the Liberty Mutual policy would end on October 3 after approximately 10 years of continuous coverage. The policyholder said the notice came amid California’s continuing insurance crisis, which has been shaped by wildfire exposure, rising rebuilding costs, natural-disaster risks and decisions by major insurers to reduce their presence in the state.
The individual case is part of a much larger shift already announced by Liberty Mutual and its subsidiary Safeco. The companies previously confirmed plans to withdraw from California’s condo and renters insurance markets, with non-renewals of existing Liberty Mutual condo and renters policies beginning in 2026.
Liberty Mutual Is Leaving California’s Condo Insurance Market
Liberty Mutual began reducing its offerings before the latest policyholder received a non-renewal notice. The company stopped writing new Safeco condo and renters policies in California on January 1, 2025, and announced that the non-renewal process for existing Liberty Mutual condo and renters policies would start on January 1, 2026.
In explaining the decision, Liberty Mutual said it was simplifying its California business and focusing on core products it believes can remain sustainable over the long term. The insurer said several of the discontinued product lines had underperformed financially over the previous decade.
At the time the withdrawal plans were disclosed, Liberty Mutual was California’s fourth-largest home insurer and covered nearly 67,500 condominiums and approximately 102,200 rental properties through the Liberty Mutual and Safeco brands.
The insurer has said it is not completely abandoning California. It plans to continue offering certain core Safeco products, including homeowners, auto, landlord and umbrella insurance. However, condo owners and renters affected by the withdrawal must look elsewhere for replacement coverage. California’s Insurance Crisis Continues to Affect Homeowners
Liberty Mutual is far from the only major insurer to reduce its exposure in California. In recent years, several companies have stopped writing new policies, withdrawn from certain insurance lines or reduced renewals as the industry responds to wildfire losses, higher rebuilding costs and growing financial uncertainty.
The result has been an increasingly difficult market for some homeowners and condo owners. One San Francisco condo owner told CBS News that after being dropped by an insurer despite never filing a claim, he eventually found replacement coverage that cost nearly $2,700 more than his previous policy.
The problem can be especially frustrating for long-term customers who have paid premiums for many years and suddenly receive notices that their policies will not continue. In the latest case highlighted by the New York Post, the condo owner had reportedly maintained coverage for around a decade before being told the policy would end.
Some California Residents Have Special Protection From Non-Renewals
California law provides limited protection for certain residential insurance customers affected by major wildfires. Under Senate Bill 824, insurers are generally prohibited from canceling or non-renewing residential property policies because of wildfire risk for one year in designated ZIP codes located within or adjacent to a wildfire perimeter following a gubernatorial state-of-emergency declaration.
However, that protection does not automatically apply to every California property owner or every type of non-renewal. Eligibility depends on the property’s location, the declared disaster involved and the stated reason for ending the policy. California’s Department of Insurance advises consumers in protected ZIP codes who receive a wildfire-related cancellation or non-renewal notice to contact their insurer and, if necessary, seek assistance from the department.
Condo Owners Face an Uncertain Market
For California condo owners, losing an individual HO-6 policy can create significant financial and logistical challenges. Condo insurance generally covers personal belongings, personal liability and certain portions of the interior of a unit that may not be fully protected by the condominium association’s master policy.
Finding replacement coverage can also take time, particularly in areas where insurers have reduced new business. The pressure is likely to continue as Liberty Mutual’s announced non-renewals move forward throughout 2026.
The latest case illustrates a broader reality facing thousands of Californians: years of loyalty to one insurer no longer guarantee that coverage will continue.
For condo owners receiving similar notices, the most important step is to review the effective date and stated reason carefully, determine whether any state protections apply and begin searching for alternative coverage as early as possible.
As California continues trying to stabilize its insurance market, the experiences of longtime policyholders losing coverage show how deeply the crisis is affecting ordinary property owners — even those who have maintained insurance for many years.
