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The Challenges of Fire Insurance in Flammable Times

The Challenges of Fire Insurance in Flammable Times

Sonoma County residents having a hard time getting fire insurance on their homes in high fire risk areas? 

 

Obtaining fire coverage for homes that are hard to insure due to their fire score is an exploration on changing landscape. Companies are reevaluating as we speak, which is why, as an independent agent/broker representing multiple carriers, we will be able to further explore your options. 

 

In some areas, we will only be able to obtain the fire portion of the coverage by going through the California Fair Plan.  Below are some key concepts to understand about this option. 

 

  • The FAIR Plan Dwelling Fire policy does not include coverage for theft, water damage, and liability. 

  • Because FAIR Plan only offers the fire portion of the coverage, you will ALSO need a Difference in Conditions (DIC) policy, sometimes called a companion or wrap around policy, also available through our office. 

  • The Fair Plan policy does not offer DIC policies, and on their website they provide a list of companies providing this additional and important supplement coverage, two of which we are able to offer. 

  • Allow yourself time. When the standard carriers can’t provide coverage, we’ll be putting out feelers through our wholesalers, but this has a longer turnaround time, to be sure that the FAIR plan is our last available option.

  • Check back at renewal so that we may re-shop your coverage. As we are always working to connect with more options, next year we may find your area has opened up and will want to explore that before renewing the FAIR plan option.  

  • For more information, please also refer to the California Fair Plan website:  https://www.cfpnet.com/ where you will also find a consumer tab for a deeper dive into the concepts.