If you’re a property owner or landlord in California looking for insurance, you might have come across Obie Insurance. But a key question that comes up often is: Is Obie Insurance admitted in California?
The short answer? No, Obie Insurance is not an admitted insurance provider in California. But what does that actually mean? And should you be worried about it?
This guide will explain everything you need to know about admitted vs. non-admitted insurance and help you decide whether Obie Insurance is the right choice for your needs.
What is Admitted vs. Non-Admitted Insurance?
Before we dive into Obie Insurance, let’s break down what admitted and non-admitted insurance means.
Admitted Insurance
An admitted insurance company is one that:
- Has been approved by the California Department of Insurance (CDI).
- Follows state regulations and laws to ensure fair pricing and practices.
- Offers state-backed financial protection—if the company goes bankrupt, the state may step in to pay claims.
- Policyholders can file complaints with the state if they believe their claims were handled unfairly.
Non-Admitted Insurance
A non-admitted insurance company is one that:
- Has NOT been approved by the CDI.
- Does not have to follow state insurance regulations.
- Is not backed by the state guarantee fund, meaning if the company fails, your claims may not be paid.
- Can offer more flexible coverage but often comes with higher risks.
So, Where Does Obie Insurance Stand?
Obie Insurance is a non-admitted insurance provider in California. This means it has not received approval from the state’s Department of Insurance and does not follow certain state insurance rules.
What Does It Mean for You as a Policyholder?
Now that we know Obie Insurance is non-admitted in California, you might be wondering, should I still consider them? Here’s what it means for you:
1. Obie Can Offer More Flexible Coverage
Since Obie is non-admitted, they don’t have to stick to strict state rules about what they can and can’t cover. This means they might offer insurance options that other admitted companies don’t.
For example:
- They may cover high-risk properties that other insurers reject.
- They may offer specialized landlord insurance that suits rental properties better.
- They can customize policies more easily.
2. No State Protection if Obie Fails
One major downside of choosing a non-admitted insurer is that the state will not help you if the company goes bankrupt.
With an admitted insurance company, the state will step in if the company collapses and ensure claims are paid. But with a non-admitted insurer like Obie, you’re on your own if they go out of business.
3. No Right to Appeal to the State Insurance Department
If you have a dispute over a claim, you cannot appeal to California’s Department of Insurance.
With admitted companies, you can file complaints, request investigations, and possibly get your claim reviewed. But with Obie, you don’t have that option. Your only choice is to resolve issues directly with Obie or take legal action.
4. May Be More Expensive Due to Fees
Because Obie is non-admitted, their policies might come with additional fees or taxes that admitted companies don’t have. You’ll want to carefully read the fine print to understand any extra costs.
Why Choose a Non-Admitted Insurance Company Like Obie?
Even though Obie Insurance is not admitted in California, many landlords still choose them. Why?
Here are some reasons why you might consider Obie despite their non-admitted status:
1. They Cover Properties That Admitted Insurers Won’t
If you own a rental property in a high-risk area (wildfire-prone, flood zones, etc.), many admitted insurance companies won’t offer you coverage.
Obie may be one of the few companies willing to insure your rental property.
2. They Specialize in Landlord Insurance
Obie is not a general insurance company—they focus specifically on landlord insurance for rental properties. This means their policies may be better tailored to your needs than a standard homeowners’ policy.
3. Faster, More Flexible Process
Since Obie is a tech-driven company, they offer quick online quotes, instant policies, and easy renewals. If you need coverage fast, Obie might be a good option.
4. Competitive Pricing
Despite being non-admitted, Obie claims that landlords save an average of 25% compared to traditional insurance companies. If cost is your biggest concern, it may be worth getting a quote.
Is Obie Insurance Safe to Use?
If Obie is not admitted, should you be worried about using them? Here’s how you can evaluate their reliability before making a decision:
1. Check Their Financial Strength
Since Obie is not backed by the state, you should research their financial stability. Look for their AM Best rating (which measures an insurer’s financial strength). A high rating (A or better) means they are financially secure.
2. Read Customer Reviews
See what other landlords are saying about Obie. Check reviews on Trustpilot, Google, or the Better Business Bureau (BBB). Pay attention to:
- Claims handling (Do they pay claims fairly and quickly?)
- Customer service (Are they easy to reach?)
- Policy terms (Any hidden fees or surprises?)
3. Compare Policies with Other Companies
Before committing, get quotes from multiple insurers (both admitted and non-admitted). Compare:
- Coverage options
- Premium costs
- Deductibles
- Exclusions
- Customer service reputation
Alternatives to Obie Insurance in California
If you’re not comfortable with a non-admitted insurer, here are some admitted companies that offer landlord insurance in California:
CompanyAdmitted in CA?Specialty
State Farm ✅ Yes Standard & rental property insurance
Farmers ✅ Yes Landlord & vacation rental insurance
Travelers ✅ Yes High-value property coverage
Safeco ✅ Yes Multi-unit rental insurance
These companies are state-approved and may provide more security if you prefer an admitted insurer.
Final Verdict: Should You Use Obie Insurance in California?
Obie Insurance is NOT an admitted provider in California. This means it operates outside of state regulations, but it also offers more flexible coverage.
Who should consider Obie? ✔️ Landlords who struggle to get coverage from admitted insurers.
✔️ Property owners looking for quick, online policy approvals.
✔️ Those who are comfortable with the risks of a non-admitted insurer.
Who should avoid Obie? ❌ Landlords who want state-backed protection in case the insurer fails.
❌ Property owners who want the ability to appeal claims to California’s insurance department.
❌ Those who prefer an established, admitted insurance company.
If you’re considering Obie, do your research, read their policy details carefully, and compare them to admitted insurers. Making an informed choice can save you from future headaches.
Would you choose a non-admitted insurer like Obie, or do you prefer the security of an admitted company? Let us know in the comments below! 🚀