More Americans struggle to secure or renew home insurance in high fire risk areas based on the 2021 survey by the National Association of Insurance Commissioners (NAIC). NAIC found that two-thirds of homeowners said their insurance premiums rose in the last three years. Wildfires also make it harder for residents to renew insurance.
Getting home insurance is expensive but not securing one can only increase the risk, especially if one’s home lies in high-risk fire regions. The Insurance Information Institute reported that more than four million homes in the United States in 38 states are at high or extreme wildfire risk.
Considering the cost and risk of wildfires to people’s lives, it is important to avail of home insurance among households. Aside from homeowners insurance companies, people can also get this insurance package from the following:
FAIR Plans
Every state provides the FAIR or Fair Access to Insurance Requirements Plans for people who cannot get homeowners insurance. FAIR Plans cover the expenses needed in the event of fire, vandalism, riot, and windstorms.
Unfortunately, FAIR is only temporary, and residents need to shop for new insurance every four to six months. FAIR also does not compensate for liability or medical payments aside from excluding some additional living expenses (ALE) and personal property coverage wildfire causes. To supplement the FAIR Plan, people can opt to use the Difference in Coverage (DIC) plan.
Surplus Lines Insurance Carriers
These insurance carriers, also referred to as excess lines insurance carries or non-admitted carriers specialize in providing risk coverage that standard insurance companies cannot. Comparatively, the insurance cost in this provider is more costly and more limited than standard carriers.
Residents opting for this option must first check the company’s financial solvency before purchasing the insurance plan because once they have gone bankrupt, states do not guarantee payment of claims, similar to those of admitted insurance carriers.
Premier Carriers
Chubb, AIG, and PURE are among the premier carriers that insure high-risk, high-value properties. Usually, they provide fire prevention and private firefighting services. However, for one to qualify, these carriers have a quota to exceed.
These are the few options people can consider getting California home insurance in high fire risk areas. ISU Armac is also a reputable insurer to avail of the said package. Call us at (760) 241-7900 or email us at info@isu-armac.com for more information.
