Beware: Insurers Leaving the Hills

Many of us are receiving non-renewal notices from our insurance companies.  Some companies are no longer insuring homeowners policies in very high fire hazard severity zones and others are leaving California altogether. 

The good news is that if you do get a non-renewal notice, you’ll have a couple of months to secure new insurance. The bad news is that you might need that much time and that you will likely pay more.

Here are a few helpful hints to get you through the process.

Talk to your insurance agent or broker as soon as you can to find out whether you are likely to receive a non-renewal notice. If a non-renewal is likely then you can immediately begin preparing by taking the following actions:

• Make sure your home records are up-to-date. Insurance providers will want to know the age of your roof, your electrical system, and your plumbing. They also may want to know about past claims and may inquire about other details about your home.

• Learn about the difference between admitted and non-admitted carriers. Many replacement policies are being written by non-admitted carriers which are insurance companies that may have unique policies with non-standard conditions.

• Start getting names of brokers from friends and neighbors. 

If you do get a non-renewal notice keep the following in mind:

• Your broker may be able to change the provider’s determination about your home.

• The California FAIR Plan is available (likely more expensive with less comprehensive coverage) if you can’t find suitable coverage elsewhere. 

Need to review homeowners’ insurance basics?  Here’s a pretty good overview. You might also find the California Department of Insurance website useful.