Sending our love to the wonderful people of Maui and Hawai’i as they recover from catastrophic wildfires. If you’d like to do something to help, we encourage you to consider donating to the Maui Strong Fund from the Hawai’i Community Foundation. Mahalo.
Insurance companies are shying away from new policies in California and raising rates on existing customers after years of wildfires have devastated their bottom line. How can you keep your current plan or find a new policy that fits your budget?
If your insurance company tells you they’re not renewing your policy, don’t panic! You’re entitled to 45 days notice before the policy expires, which gives you time to shop around for a replacement policy or renegotiate with your current provider. If you don’t receive proper notice, don’t hesitate! Call the California Department of Insurance (DOI) at 1-800-927-HELP or go online to insurance.ca.gov and check to see if your policy has a guaranteed renewal provision. And if you think you’re out of options, you’re not. Call the California FAIR Plan at 1-800-339-4099. FAIR warning: This policy can be expensive, and it only covers certain losses, so you may need to buy Differences in Conditions (DIC) insurance too.
Who wants to spend all day and night and part of the weekend filling out forms and running themself ragged with research? Okay, some of us love this kind of stuff. But for the rest of us, I recommend getting an insurance agent. The DOI website offers a tool to help you find an agent or broker near you, as well as other resources. Before you decide on an agent, check to see if they work exclusively with one insurance company or have access to multiple carriers so you know you’re getting the best deal. And come prepared with questions for your agent such as: What is covered and what is not? Can I get the full cost to rebuild if disaster strikes? Does it cover demo or debris removal? Is there a coverage limit?
As building costs, fraud, and risk from wildfires and other climate disasters continue to rise, some insurance companies are backing away from issuing new homeowner policies in the Golden State. What does this mean for potential buyers and sellers?
If you’re thinking of buying a home in California, you should get a head start on finding a home insurer who will give you a good policy at an affordable rate before making an offer. Understanding your annual expenses is a key factor in determining how high you’re willing to go.
Insurance companies aren’t nonprofits, and they’re not stupid either. They already know the risks of insuring properties in earthquake country, and the recent trend of wildfires hasn’t made the equation any more favorable to them. In other words, don’t hate the player, Hate the game!
CalFire uses the term “defensible space” to describe a buffer between buildings on your property and the grass, trees, shrubs, or other wild areas surrounding it. By creating a defensible space around your home, you can slow or stop the spread of wildfire and save your property from a tragic ending from embers, flames, or excessive heat. This space also provides firefighters a safe space to work while protecting your home. Learn more.
It’s important to keep your property lean and green to help protect your family and home, but “home hardening” is also essential to improve your home’s chance of surviving a wildfire. A few ideas: re-roof with materials such as composition, metal, clay or tile; install dual-paned windows with one pane of tempered glass to reduce the chance of breakage in a fire; or remodel your walls with ignition resistant building materials. Get more tips from CalFire.
Things any of us can do:
Things not everybody should do:
