Insurance Changes in California and Beyond: What You Need to Know

Understanding the Current Situation

Insurance companies are adjusting their coverage in areas with high natural disaster risks, particularly in California and Florida. While this is creating some uncertainty, it’s important to know that options remain available for homeowners and renters.

What’s Actually Happening?

• Insurance companies are reassessing risk in wildfire-prone areas in California and hurricane-prone regions in Florida
• Some companies have stopped issuing new policies or are not renewing existing ones
• The California FAIR Plan, a safety net for those who can’t get traditional insurance, is available but has limited funds
• Rates are expected to increase, but new regulations are being put in place to help maintain insurance availability

Practical Steps to Take

If You Currently Have Insurance:

1. Start your renewal process early (90 days before expiration)
2. Document your property:
   • Take photos and videos
   • Create an inventory of valuable items
   • Keep digital copies of important documents
   • Save all insurance-related correspondence

If Your Policy is Canceled or Not Renewed:

1. Contact multiple insurance companies for quotes
2. Consider working with an insurance broker who can access multiple carriers
3. Look into surplus lines insurance through specialized brokers
4. Check your eligibility for the FAIR Plan

Understanding Your Options

Traditional Insurance Companies

• Still the first and best option when available
• May offer better rates if you bundle policies
• Usually provide more comprehensive coverage

Surplus Lines Insurance

• Specializes in higher-risk properties
• Might be more expensive but offers needed coverage
• Available through specialized insurance brokers

FAIR Plan

• Available in 35 states including California
• Acts as a safety net when other options aren’t available
• Basic coverage that might need to be supplemented
• May be more expensive than traditional insurance

Ways to Improve Your Insurance Situation

Home Protection Measures:

• Install fire-resistant roofing
• Add storm shutters or reinforced windows
• Create defensible space around your property
• Update electrical and plumbing systems
• Install security systems

Documentation Tips:

• Keep receipts for all home improvements
• Document maintenance and safety measures
• Update your home inventory annually
• Store copies of important documents in multiple locations

Questions to Ask Your Insurance Provider:

1. What specific risks are covered?
2. Are there any new exclusions I should know about?
3. What can I do to maintain coverage or reduce rates?
4. What disaster preparedness measures might qualify for discounts?

In A Nutshell . . .

Remember that while the insurance landscape is changing, being proactive is your best strategy. Don’t wait until the last minute to explore your options. Start early, document everything, and consider working with an insurance professional who can help you navigate the market. If you need an insurance broker to connect with, reach out and I can give you connections to someone who can help.