Homeowner's insurance
Go to any block party or neighborhood gathering in California, and the topic of Homeowner’s Insurance is likely to come up. The market here is currently facing a series of challenges that are affecting affordability and availability for both current residents and new home buyers. This difficult environment is pushing homeowners to explore all available options when insurance coverage is dropped or hard to come by.
What can you do to help protect yourself from being dropped from your Homeowner’s insurance?
- Bundle. Look into switching additional policies to one insurance carrier. The more policies you have with a given carrier, the less likely they are to drop your coverage.
- Avoid making claims when possible. Insurers may view claims as a sign of elevated risk. If you are on the fence with them, even a small claim may tip the scales, inducing them to drop your coverage.
- Keep up with general home maintenance. Maintain a yard free and clear of debris, clear gutters, and a well-maintained roof. If they examine your house, do not give them an excuse to drop you.
- Inform your insurance company of any new home upgrades. Items such as new electrical, plumbing, or a new roof is likely to reduce your home’s risk.
What can you do if you’re being dropped from your homeowner’s insurance?
- Use independent insurance agents or brokers who can compare quotes from multiple insurers and might have access to companies that specialize in covering higher risk properties.
- Shop Around. Even if major insurers are pulling back from the market, there may still be options available. Don’t hesitate to reach out to smaller, local, or specialty insurers who might have different underwriting criteria.
- California FAIR Plan. If you are in a high-risk area and finding it difficult to get insurance, you might consider the California FAIR Plan. It is known as the insurer of last resort and offers fire insurance. However, this should be the last resort as it often covers less and costs more than standard insurance.
- Prepare for Higher Costs: Given the changes in the insurance landscape, particularly in areas prone to natural disasters, be prepared for potentially higher costs. Adjusting your budget to accommodate these changes can prevent future surprises.
There is some hope that the current environment will improve. Streamlining insurance companies’ ability to apply for rate increases and allowing new disaster modeling techniques are two of the recent updates in California. Time will tell if these adjustments help the cause.
We understand that finding out your homeowner's insurance has been discontinued can be concerning. Please know that we're here to help. So, don't hesitate to reach out to us. Our team is dedicated to assisting you in exploring your options and finding a solution that meets your needs. You can count on us for support and guidance every step of the way.
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