How to Find High-Risk Fire Insurance
It's starting to feel like the entire state of California is in a high fire risk area. At least that's what most homeowners' insurance companies & commercial insurance companies will attest to. In fact, insurers & reinsurers are forking out huge sums of money to better determine fire scores of a particular region. This is leading to a growing number of non-renewals due to wildfire scores over the last 3 years as many standard insurance companies are not willing to continue insuring a home or commercial building in an elevated wildfire zone.
Many of these consumers being non-renewed find that their insurance premiums skyrocket & their coverages get slashed IF & when they find a replacement policy. Oftentimes, this leads to consumers obtaining coverage via the CA Fair Plan. While I believe there is a time & place for this type of policy - most consumers in the CA Fair Plan currently could find far superior coverage for less premium elsewhere in the marketplace.
If you own a business or home in one of these areas, what can you do?
Have You Been Non-Renewed?
- Call your current broker or insurance company directly & get a loss history on your current policy. The loss history should be at least three (3) years, but five (5) years is better.
- Call SBW Insurance Serivces to discuss your options.
If your premium has increased tremendously, call us today to find out what other insurance carriers & premium options are available to you.
Don't Wait Until the Last Minute
Insurance Companies are required to give at least 30 days' written notice of nonrenewal, though most states require them to give 90 days' notice (CA requires this). This allows the policyholder sufficient time to find replacement coverage.
Often these notices come with a copy of your loss history, but if not, contact your company immediately to obtain one. The sooner you get started looking for replacement coverage, the more likely you are to find favorable terms for your new policy.
Buying Property in a High-Risk Area?
If you've always wanted a home or business in a mountainous or otherwise high fire risk area, there is hope for you, too. PLEASE reach out to an insurance broker prior to signing on the dotted line though as the cost of insurance can be much higher & could ultimately affect your ability to qualify for the loan.
While many standard carriers are pulling out of high fire risk areas, there are companies still willing to write homes & businesses. SBW Insurance Services works with several companies that specialize in writing insurance in higher wildfire zones for both homes & businesses.