Wildfire and High Brush Home Insurance
The state of in home insurance has changed a lot since the beginning of the year. In all the years I have been doing insurance this is the most dramatic shift I've experienced. I would never have expected that I would need to dedicate an entire section to high risk homes or wildfire insurance coverage. But, here we are with the new reality that it can be very hard to find insurance carriers to cover rural homes, homes close to native growing material and homes in the mountains or forests that make up our state.
I have written several articles this year about wildfire dangers and the new risks facing our state. The state has an insurance carrier of last means called the California FAIR plan. The policy does have some limitations, but it is available to everyone. It is becoming the one policy that will cover many rural homes in high risk areas. As an agent I try to place all my insureds with standard carriers. Those policies are much more comprehensive and usually less expensive. If you have no other options then the FAIR Plan is available. You will also want to add a separate policy called a "difference in conditions". That policy helps fill in the gaps that the FAIR plan policy has.
Give me a call if you are getting non renewed on your home insurance. I offer more carriers than most agents do. I also have a years worth of experience placing the challenging homes. 951-395-0754
I have written several articles this year about wildfire dangers and the new risks facing our state. The state has an insurance carrier of last means called the California FAIR plan. The policy does have some limitations, but it is available to everyone. It is becoming the one policy that will cover many rural homes in high risk areas. As an agent I try to place all my insureds with standard carriers. Those policies are much more comprehensive and usually less expensive. If you have no other options then the FAIR Plan is available. You will also want to add a separate policy called a "difference in conditions". That policy helps fill in the gaps that the FAIR plan policy has.
Give me a call if you are getting non renewed on your home insurance. I offer more carriers than most agents do. I also have a years worth of experience placing the challenging homes. 951-395-0754
Your Home Insurance Just Got Non-Renewed
Ever since last years fires in California insurance companies have been non renewing houses at a torrential pace. Even homes far from native growing brush and trees are dealing with non renewals. What do you do if you get a non renewal letter in the mail? You can get mad, yell and scream. But, what are really your options?
The first thing most of us would do if we got a non renewal letter is call your current insurance carrier and ask them why they are being non renewed. Yeah, the letter usually spells it out pretty clearly. But, sometimes you actually want to hear from a human that they are in fact non renewing your home. If you haven’t had any claims and you have been paying your bill loyally for years it’s easy to feel offended that your insurance company has dropped your home coverage. Legally, home insurance companies can't cancel your policy during the policy period. That's why they use the non renewal to get off business they feel is too risky.
A few things to know. Don’t take it personally. You didn’t do anything wrong. Your home just happens to be in an area that the company no longer wants to cover. It’s not about you. It’s just the companies effort to reduce their exposure in certain areas. Also, it’s important to know that once they non renew you. They probably won’t change their mind and offer you a renewal.
I have one company that will remain nameless for now. At the beginning of the year they were happily collecting money to cover homes all around town. A few months later they stopped issuing policies for my entire city. Not just the houses that are near the hills or situated in rural areas. They turned off insurance for everyone and then started non renewing all the policies that they had in force in the city. Does this make for a great customer experience definitely not. Is it costing this company a lot of money? Yes, absolutely. Good news is that for most people in my city there are ten other carriers willing to insure their home and autos and it’s just a matter of taking some time and switching everything over. Other locations aren't as lucky.
I had actually planned on switching my home insurance to this company. I had filled in the application. Updated my mortgage company. And then I quickly realized that next year they would non renew me and I would have to shop my home insurance all over again. I decided at that point to stay with my current home carrier that wasn’t acting so drastically. I had to call my mortgage company and tell them to pay my current carrier. I had to cancel the new policy I had started. I needed to reapply my refund to my impound account. Oh, the fun.
Is it a pain to deal with a non renewal. Yes, it’s much easier when the home insurance just renews automatically, your mortgage company pays it and you don’t think about it. Unfortunately, a lot of people are finding themselves shopping for new insurance this year. Most homes will be able to easily find new insurance. But, there are some homes that based off the location or claims history will struggle to find a new carrier. It’s just a matter of calling around and letting your agent know what your situation is. Most insurance agents have been dealing with this all year and we can pretty much tell you right away what your options are. The nice thing about calling an agency like mine is that we have lots of options. So, instead of calling ten different carriers you can call me and I’ll do the shopping and let you know your best options. Since we have so many home insurance options we still have carriers that will cover higher risk homes. We also work with the California FAIR Plan. They are the last resort, but we can get you covered
The first thing most of us would do if we got a non renewal letter is call your current insurance carrier and ask them why they are being non renewed. Yeah, the letter usually spells it out pretty clearly. But, sometimes you actually want to hear from a human that they are in fact non renewing your home. If you haven’t had any claims and you have been paying your bill loyally for years it’s easy to feel offended that your insurance company has dropped your home coverage. Legally, home insurance companies can't cancel your policy during the policy period. That's why they use the non renewal to get off business they feel is too risky.
A few things to know. Don’t take it personally. You didn’t do anything wrong. Your home just happens to be in an area that the company no longer wants to cover. It’s not about you. It’s just the companies effort to reduce their exposure in certain areas. Also, it’s important to know that once they non renew you. They probably won’t change their mind and offer you a renewal.
I have one company that will remain nameless for now. At the beginning of the year they were happily collecting money to cover homes all around town. A few months later they stopped issuing policies for my entire city. Not just the houses that are near the hills or situated in rural areas. They turned off insurance for everyone and then started non renewing all the policies that they had in force in the city. Does this make for a great customer experience definitely not. Is it costing this company a lot of money? Yes, absolutely. Good news is that for most people in my city there are ten other carriers willing to insure their home and autos and it’s just a matter of taking some time and switching everything over. Other locations aren't as lucky.
I had actually planned on switching my home insurance to this company. I had filled in the application. Updated my mortgage company. And then I quickly realized that next year they would non renew me and I would have to shop my home insurance all over again. I decided at that point to stay with my current home carrier that wasn’t acting so drastically. I had to call my mortgage company and tell them to pay my current carrier. I had to cancel the new policy I had started. I needed to reapply my refund to my impound account. Oh, the fun.
Is it a pain to deal with a non renewal. Yes, it’s much easier when the home insurance just renews automatically, your mortgage company pays it and you don’t think about it. Unfortunately, a lot of people are finding themselves shopping for new insurance this year. Most homes will be able to easily find new insurance. But, there are some homes that based off the location or claims history will struggle to find a new carrier. It’s just a matter of calling around and letting your agent know what your situation is. Most insurance agents have been dealing with this all year and we can pretty much tell you right away what your options are. The nice thing about calling an agency like mine is that we have lots of options. So, instead of calling ten different carriers you can call me and I’ll do the shopping and let you know your best options. Since we have so many home insurance options we still have carriers that will cover higher risk homes. We also work with the California FAIR Plan. They are the last resort, but we can get you covered
Sandlewood Fire 10/15/2019
The first major wildfire event happened in my area last week. The fire was named Sandalwood. It was named after one of the cross streets where the fire started. The other was 7th St. So, I'm assuming naming it 7th wasn't as appealing. From the reports and videos I've seen online it appears that a trash truck was hauling a load of trash when the driver realized the truck was smoking. I'm sure he has been trained to find an open area and dump the trash so that the truck doesn't catch on fire. Those trucks are pretty darn expensive. In this case it was a tragic lapse in judgement, On a day when it was extremely dangerous to unload his truck that's exactly what happened with deadly results.
I watched the video of a motorist that was following the truck and I located the area where it pulled over by comparing google maps with the video. On the map above you can see a small outcropping next to the road. I marked it with a red star. That is where the truck pulled over and then dumped his burning load of trash. The mobile home park was due west of this location. The winds easily blew the flames across the dry grassy area below the mobile home park. The flames then went directly into the park. Out of roughly 100 structures in the mobile home park 76 were lost. Even more tragic two people lost their lives. It just shows the speed and ferocity of the flames that burned through the area.
The park was in a very isolated area and if the trash was dumped in a different location this fire may have been averted. There is only one entrance in and I'm assuming that's how everyone got out. Looking at the map it is very fortunate that more people didn't get stuck in the park. If the flames had burned a little more towards the north the entrance could have been blocked, and the residents would have had to drive through the flames to get out.
I never considered what would happen if a trash truck caught on fire. How often does something like this actually happen? Why don't these trucks have some sort of fire suppression system on board? Why isn't there an alarm that notifies the driver sooner? Shouldn't they call the fire department before dumping? I'm sure all the things that went wrong that day will be reviewed and changes and policies for dumping trash will be changed.
For now the residents Villa Calimesa mobile home park will have to start over. Hopefully, the residents have mobile home insurance. I imagine that almost all of them do because I'm sure the park requires home insurance.
Mobile home insurance works slightly different from a homeowners policy. The dwelling coverage on a mobile home is based not on rebuilding but replacement. Some policies can insure a mobile to a actual cash value. That means an older home would get less money because as mobiles age they lose value. A better policy has replacement cost coverage. The replacement cost gives them money to buy a new home, not replace it with an old used model. The policies also cover loss of use. So, while they can't live in the park they would get money to rent a place while their home is being replaced. It also covers personal property. That means they can go out and start replacing their clothing and their belongings that were lost. Once again you want to have replacement cost, because that gives you new stuff for your old stuff. Not yard sale prices for your lost belongings.
Fire season is always a little scary. You never know when or how a fire will start. You just need to be prepared in case you need to evacuate. If you are told to get out don't hesitate. Call your insurance company and if you need money to cover hotels or meals many policies will pay those expenses for you. If you need mobile home insurance I have three great companies. I'd be happy to review your limits
I watched the video of a motorist that was following the truck and I located the area where it pulled over by comparing google maps with the video. On the map above you can see a small outcropping next to the road. I marked it with a red star. That is where the truck pulled over and then dumped his burning load of trash. The mobile home park was due west of this location. The winds easily blew the flames across the dry grassy area below the mobile home park. The flames then went directly into the park. Out of roughly 100 structures in the mobile home park 76 were lost. Even more tragic two people lost their lives. It just shows the speed and ferocity of the flames that burned through the area.
The park was in a very isolated area and if the trash was dumped in a different location this fire may have been averted. There is only one entrance in and I'm assuming that's how everyone got out. Looking at the map it is very fortunate that more people didn't get stuck in the park. If the flames had burned a little more towards the north the entrance could have been blocked, and the residents would have had to drive through the flames to get out.
I never considered what would happen if a trash truck caught on fire. How often does something like this actually happen? Why don't these trucks have some sort of fire suppression system on board? Why isn't there an alarm that notifies the driver sooner? Shouldn't they call the fire department before dumping? I'm sure all the things that went wrong that day will be reviewed and changes and policies for dumping trash will be changed.
For now the residents Villa Calimesa mobile home park will have to start over. Hopefully, the residents have mobile home insurance. I imagine that almost all of them do because I'm sure the park requires home insurance.
Mobile home insurance works slightly different from a homeowners policy. The dwelling coverage on a mobile home is based not on rebuilding but replacement. Some policies can insure a mobile to a actual cash value. That means an older home would get less money because as mobiles age they lose value. A better policy has replacement cost coverage. The replacement cost gives them money to buy a new home, not replace it with an old used model. The policies also cover loss of use. So, while they can't live in the park they would get money to rent a place while their home is being replaced. It also covers personal property. That means they can go out and start replacing their clothing and their belongings that were lost. Once again you want to have replacement cost, because that gives you new stuff for your old stuff. Not yard sale prices for your lost belongings.
Fire season is always a little scary. You never know when or how a fire will start. You just need to be prepared in case you need to evacuate. If you are told to get out don't hesitate. Call your insurance company and if you need money to cover hotels or meals many policies will pay those expenses for you. If you need mobile home insurance I have three great companies. I'd be happy to review your limits
CORELOGIC WILDFIRE REPORT
I recently wrote a post about how we are in the heart of wildfire season. Wildfire season is always a scary time because one day everything is fine and the next we could be dealing with a major blaze. Even when the winds are low and the weather is mild there is still a risk for a fire to spread quickly through brush that has been sitting dry all summer.
A few weeks ago Corelogic released an extensive survey of areas at risk for wildfire. After reading through the report I can see both good and bad things related to the report. The bad is that pretty much all of southern California is in a high risk zone for wildfire. In fact Corelogic rates LA, Riverside and San Diego counties as the highest risk regions in the entire country. Scrolling through their data they use historical fire history, existing fuel aka native growing vegetation, the slope where said vegetation is growing and the direction the slope faces to determine properties at risk. They took all these factors and calculated it out over the areas where people were living. They then rated four categories, Extreme risk, High risk, Medium and Low. After all that was done they rated the counties with the most homes in the high risk areas. Yay! LA wins. Riverside took second and San Diego third.
What makes a high risk zone according to Corelogic. The biggest risk is your proximity to native growing materials. Yes, slope and direction impact the rating but realistically it is all about how much distance you have between your home and the hillsides where the brush is growing.
So, how will this information be used by home insurance companies moving forward. The good aspect of reports like this are that it does show that most homes are at low risk. If insurance companies use this data they will be able to be more specific about what constitutes high or low risk. Rather than just excluding whole cities they can now begin to take on some risk in areas they now consider too high a risk. If insurance companies delve even further into the report they might also look at which direction the brush is located from the home. Is the brush on a slight downslope facing north? If that is the case it might be a lower risk home than a house on top of a hill with a steep slope with brush to the south.
Rings of fire. That’s what I’m going to call the rating system for Corelogic. Basically imagine native brush as your most at risk area to start a fire, that’s the internal ring and where you are at extreme danger. Next is the edge where the native brush comes up to open areas or developed areas. That is your high risk area for homes. The next level away from the brush is moderate risk and then it leads low risk. The further you get from the native materials the safer it is. Good news, most of us live in low risk areas!
At the end of the day wildfires seem to be increasing with regularity. That isn’t a good thing for people who live in Southern California. The more fires we have the harder it will be to find a company to cover the home and we will all end up paying more for the insurance.
If you’d like to read the Corelogic report you can click here. https://www.corelogic.com/insights/wildfire-risk-report.aspx?WT.mc_id=crlg_190905_XhT4I
It is really interesting to see how they draw a comparison to hurricanes on the east cost to fires out west. The basic comparison goes like this, just like hurricanes build strength over warm open water wildfires do the same over native growing brush. The larger the fire gets the more intense and more damage they do. Is more data better or worse for the insurance business? We will see! Give me a call if you’d like to take a look at your current home insurance.
A few weeks ago Corelogic released an extensive survey of areas at risk for wildfire. After reading through the report I can see both good and bad things related to the report. The bad is that pretty much all of southern California is in a high risk zone for wildfire. In fact Corelogic rates LA, Riverside and San Diego counties as the highest risk regions in the entire country. Scrolling through their data they use historical fire history, existing fuel aka native growing vegetation, the slope where said vegetation is growing and the direction the slope faces to determine properties at risk. They took all these factors and calculated it out over the areas where people were living. They then rated four categories, Extreme risk, High risk, Medium and Low. After all that was done they rated the counties with the most homes in the high risk areas. Yay! LA wins. Riverside took second and San Diego third.
What makes a high risk zone according to Corelogic. The biggest risk is your proximity to native growing materials. Yes, slope and direction impact the rating but realistically it is all about how much distance you have between your home and the hillsides where the brush is growing.
So, how will this information be used by home insurance companies moving forward. The good aspect of reports like this are that it does show that most homes are at low risk. If insurance companies use this data they will be able to be more specific about what constitutes high or low risk. Rather than just excluding whole cities they can now begin to take on some risk in areas they now consider too high a risk. If insurance companies delve even further into the report they might also look at which direction the brush is located from the home. Is the brush on a slight downslope facing north? If that is the case it might be a lower risk home than a house on top of a hill with a steep slope with brush to the south.
Rings of fire. That’s what I’m going to call the rating system for Corelogic. Basically imagine native brush as your most at risk area to start a fire, that’s the internal ring and where you are at extreme danger. Next is the edge where the native brush comes up to open areas or developed areas. That is your high risk area for homes. The next level away from the brush is moderate risk and then it leads low risk. The further you get from the native materials the safer it is. Good news, most of us live in low risk areas!
At the end of the day wildfires seem to be increasing with regularity. That isn’t a good thing for people who live in Southern California. The more fires we have the harder it will be to find a company to cover the home and we will all end up paying more for the insurance.
If you’d like to read the Corelogic report you can click here. https://www.corelogic.com/insights/wildfire-risk-report.aspx?WT.mc_id=crlg_190905_XhT4I
It is really interesting to see how they draw a comparison to hurricanes on the east cost to fires out west. The basic comparison goes like this, just like hurricanes build strength over warm open water wildfires do the same over native growing brush. The larger the fire gets the more intense and more damage they do. Is more data better or worse for the insurance business? We will see! Give me a call if you’d like to take a look at your current home insurance.
