California E&S Insurance

What happens to a mortgage when homeowners insurance is cancelled? My homeowners insurance was recently cancelled due to our area being deemed wildfire risk. Brokers have told me many companies are pulling out of our state, Colorado, and I’ve been told this is a new development for our area. I may have found coverage but am left with some questions: What will happen when homebuyers to the area run up against the challenge of insuring a new home - are underwriters leery of writing mortgages for these areas knowing insurance may be difficult to keep? and what happens if insurance is no longer available and there’s a mortgage on the property? Fortunately, I no longer have a mortgage but am genuinely curious how this may affect our (and other) markets.

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  "title": "What happens to a mortgage when homeowners insurance is cancelled?",
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