<<First Name>>,
In the last couple months, we received several notices that some insurance companies are not renewing some of our clients home insurance policies. First, let me say, this is very frustrating for us and for those particular clients who are being non-renewed.
Most of the non-renewals are due to their location. With the "wildfire exposure," a number of insurance companies are removing themselves from these areas/neighborhoods to help prevent potential future losses, like what happened over the last couple years with the big fires. That is not the only reason we have had some non-renewals. We have had a couple due to "underwriting concerns" with the home itself. Maybe there was a missing stair rail on the back porch, the roof looked a little old or wavy, there were some cracks in the driveway that were serious trip hazards, or there were too many claims in a short period of time.
With the "underwriting concerns," the insurance companies perceive most of them to be fixable within a reasonable amount of time. Sometimes you can fix them, sometimes you may not want to fix them. We are at the mercy of the insurance companies with this one, though. If they note your file and the items are not fixed within the stipulated time frame, they will not renew your policy or may cancel it. In regards to the multiple claims...claims happen. There really is not much you can do other than try to do some preventative maintenance. Please keep in mind, if you file two claims within three years, most insurance companies will not renew your policy. And an alternative will be around double your current rate, which you could be stuck with for three years until your claims drop off your record.
With the wildfire concern and not being renewed, it has become more and more difficult for us to find a good insurance option for those clients who have been effected by this. The non-admitted market, the Lloyd's of London of the world, has scaled back offering coverage in a number of these areas too. What we are left with is the CA Fair plan with a wrap-around policy. We do not love the CA Fair plan, because it is just a fire policy and is missing some key coverage items, including: water damage; theft; and, liability. The wrap-around policy fills in those gaps to make a whole policy. One of the issues, with this combination, is rates are going up quite a bit on the CA Fair plan (along with every other normal insurance company) and with having two policies, the cost is just more.
We want you to know that we will try every option possible before exploring alternatives like a Lloyd's of London or the CA Fair plan. The rules continue to evolve/change on all of us. Please know, we are always here to help you even if it means looking outside the box.
|
