Fire Season Has Started. Is Your Insurance Ready?

The recent fire outbreak in San Diego has been a nightmare for both insurers and homeowners. Because of natural wildfires and wildfires caused by arson, home insurance companies in San Diego are reevaluating which homes they will insure for fire and some have started to refuse to renew or issue coverage on homes located within 2,500 feet of brush hazard areas.

Certain parts of California, specifically in San Diego, are designated as brush hazard areas where the surrounding area could experience a large fire. To determine risk, an insurance underwriter evaluates conditions like density of brush and forest, topography, difficulty of access, seasonal wind conditions, proximity of water and fire departments and prior history of fires in the area.

Your mortgage lender has an insurable interest in your home which is why they require the mortgagee’s clause on your San Diego homeowner’s insurance policy. If your insurance company decides not to renew your coverage, your mortgage lender is notified. That’s when you need to find another policy fast. If you don’t, your lender will get its own insurance and charge you an extraordinary amount for it. What the lender might not tell you is that the coverage they purchased covers all of their interests but none of yours, leaving you virtually uninsured with significant personal exposure.

California also has the FAIR Plan insurance program, an association of all licensed insurers that cover basic property insurance in the state. FAIR provides coverage to accepted applicants that are unable to obtain insurance for their homes in the conventional market. Location of a home to any hazard beyond the control of the homeowner is not an acceptable reason for declining a risk. Whether insurance is sought through FAIR or a conventional company, an experienced and reputable insurance agency can usually determine which insurer will cover a home, just by the home’s address and zip code.

If you have recently been rejected or are interested in learning more about affordable fire insurance for San Diego homes, contact American Tri-Star Insurance today or visit our website at www.americantristarinsurance.com. As a local company, we understand the devastating effects the recent fire has had on the lives of San Diegans and are looking to help in any way we can. Call 619-272-2100 to speak to an expert agent and find out how our affordable insurance plans can help give you peace of mind.