The below article is courtesy of GSMOL's State Secretary, Carol Brinkman, with contributions from Barber's own CFO and co-owner, Cheryl Fessenden. So without futher ado, let's jump right in!
Can I Still Get Mobile Home Homeowners Insurance in California?
A GSMOL member recently called me in a panic, “My insurance company just told me they would no longer insure my mobile home! What can I do?” Her concern is increasingly echoed by many others across the state of California. Several insurance companies are tightening eligibility requirements to drastically limit who they will insure or are pulling out of California altogether. Why?
I called Barber Insurance, one of the advertisers in this magazine, and the company I have my homeowner’s insurance with. Barber has been in business long enough to have ridden the tides over many years and probably could offer some perspective.
According to co-owner Cheryl Fessenden, the current tumultuous situation is due to a confluence of several things that created a “perfect storm” that affected profitability. In a nutshell, they are Covid-19, climate change, the recent devastating fires in California, and regulations by the California Department of Insurance (CDI).
CDI regulates insurance companies to protect consumers. One such regulation prohibits an insurance company from not renewing your homeowner’s insurance for one year following a catastrophic event, such as the recent catastrophic California fires. 2023 was the first year insurance companies were released from that restriction and could decide whether to renew – or not! This was compounded by a nearly 3-year restriction on rate increases allowed for auto insurance companies following Covid. When Covid abated and people started driving again, car accidents – and repair costs - sky-rocketed. Further inflaming this tight market were supply chain delays.
In the face of this uncertain market and shrinking profitability, some insurance companies decided to leave the California market altogether. Others decided not to write new business. Others tightened their underwriting requirements to limit who they would insure such as deciding not to insure older homes or insure anyone who had a claim within the last 5 years. Fewer companies, fewer competition, fewer choices, and higher prices have created the current hardship for consumers, and agents trying to help consumers.
California does have an alternative option for home insurance - the California FAIR Plan. The FAIR Plan is available to California residents and businesses who cannot obtain insurance through a regular insurance company. As of 2020, the FAIR Plan covered less than 3% of residents, meaning more than 97% of Californians had a competitive option for insurance.
Since then, at some points in 2023 they were receiving 1000 submissions a day! Their website suggests you shop the market before calling them. They are expensive and the point of last resort when you are unable to get insurance elsewhere. You can contact a licensed insurance broker who is registered to sell Fair Insurance, or you call them directly at 800-339-4099.
The good news! Cheryl Fessenden assured me that Barber Insurance is still issuing mobile home homeowner’s policies across the state. They are a broker, not a captive agency, which means they can shop policies from many companies to find you insurance, and they are one of the licensed brokers for the Fair Plan if they can’t qualify you with one of their regular insurance companies. But Cheryl cautioned me that it takes time in this shrinking and tightening market, so be patient and allow them time.
Cheryl did recommend a couple things you can do to “stay insurable”:
- If you already have insurance, stick with your carrier! Do not let it cancel! Trying to get insurance on a home that has been uninsured is more difficult than ever.
- If you do get a cancellation or non-renewal notice, do not delay! Start shopping but be aware that most insurance companies cannot issue a policy more than 30 days in advance, so understand that timeline.
- There are a couple things you can do to keep your home safe: keep your roof updated from leaks, have your plumbing and water pipes inspected, keep trees trimmed to prevent overhanging on your property or your neighbor’s home and create a defensible fire space around your home.
In addition to supporting mobile home residents with their home insurance needs and supporting GSMOL with their advertising dollar, Barber Insurance has been sponsoring free memberships at the monthly Petaluma Coalition luncheon in Sonoma county where they are located. GSMOL would like to acknowledge Barber Insurance for their ongoing participation in our shared mission to ‘insure’ the property and rights of MH homeowners! Thank You!
By Carol Brinkman, GSMOL State Secretary
With contributions from Barber Insurance's Cheryl Fessenden