Fire Risks and Home Insurance in California

According to reliable news sources, insurance companies are in the process of reclassifying high bush fire risk areas in California. The object of this exercise is to provide homeowners in the state with the information they need to understand and evaluate the risks they face from bush fires.

With this information, they will be able to make informed decisions on the actions they need to take to protect their property and belongings. While the results of reclassification may be good news for some homeowners, it may not be so for others.

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Risk level of your home

Obviously, insurance companies are reluctant to issue policies in high-risk areas. If they agree to issue policies, the premiums will be rather high. Furthermore, policyholders in high-risk areas fear the prospect of cancellation of their insurance policies. This could happen of course, but no insurance company can afford to carry out unilaterally the cancellation en-mass of policies in these high-risk areas.

In order to cancel or refuse renewal of a policy, the company has to inspect first each home. The policyholder has to be provided with reasonable justification for its decision. The company must point out the problems that can increase the risk of damage or loss. In addition, policyholders will have to be given adequate time to take action to fix those problems.

Common causes for cancellation

The most common reasons for cancellation or non-renewal of insurance policies include the following.

      v  Old or poorly maintained roofs

v  Trees overhanging the roof

v  Less than 500 feet of defensible space and clearance from trees and brush

v  Poorly maintained yards

v  Plants like ivy growing on the side of the home

v  Homes that are vacant, under construction, being used for home stays by agencies like Airbnb, or rented when it is listed as owner-occupied

Your home insurability may suffer from any of the causes listed above or others. It will therefore be a good idea to take pre-emptive action to fix the issues before the insurance companies start raising them. An insurance company that is eager to offer a policy is much easier to deal with than the one that is reluctant to do so because of the inherent risks involved.

Insurance companies can refuse to renew the policy, in case the problems that increase the risks are pointed out, but not fixed by homeowners. Additionally, the companies can refuse to take on new customers in areas where they feel the risk is too high.

Knowing your real situation 

As a homeowner, you wouldn’t certainly like your insurance company’s intimation that your policy will be canceled or not renewed because of high bush fire risks. You would try your best to protect your home from those risks, and satisfy conditions that would facilitate sufficient insurance cover for your home.

It would be best to seek, at the earliest, a professional insurance agent’s expert guidance on where you stand and what you are required to do to ensure that your home stays properly insured.