My home insurance just got non renewed!

​The state of insurance in California took a major hit last year with the wildfires in Northern California. I have been talking with several insurance companies about the state of insurance in California. There are several companies that are non-renewing homes at huge rate. Insurance companies will not cancel a policy during your policy period. But, they will take the opportunity of a renewal to no longer cover a home they deem too risky.  There are also several companies that have decided to stop insuring homes until they can reassess the market.
Prior to last year there always seemed to be a company that was happy to pick up coverage on homes. Sometimes it was more expensive, sometimes it was about the same price. This year however almost all the companies are reassessing how they take on risk. They are moving the distance your home is from brush (open areas not maintained) further back. They have taken all the data from the most recent wildfires and determined that homes farther from the source of fire are now at a higher risk due to blowing embers. They are looking at what the cost to rebuild homes are and then re examining what they charge per square foot on your replacement cost. One company told me that in an area near LA contractors are charging over 700 per square foot to rebuild. There are laws that protect companies from price gouging on materials, but contractors can charge whatever they want for labor. And, they are taking the opportunity to charge a lot!
What does this all mean? Well, if your home is in an area near or surrounded by brush it will now be harder to get the house covered. You will have less options too. And for everyone else your rates are likely to increase to offset the costs paid out by insurance companies.
If your home insurance is getting non renewed give me a call, I still have great options available. If your rate went up give me a call too. Maybe I can find a competitive company for you. 951-395-0754 www.socalinsured.com