“Why was my homeowners insurance non-renewed or canceled?”
“How can I reduce my homeowners insurance premium?”
If you live in California, you are probably familiar with these questions. Most people are shocked to find out their homeowners insurance was non-renewed, canceled, or that they were denied coverage – even if they had been with the same company for years! They could be left to wonder what went wrong, or why they were denied coverage at all. Others might receive a quote, but it’s double the cost, poor coverage, or the terms and conditions are impossible to meet.
In this article, we’ll discuss what you need to know about homeowners insurance and how to improve your chances of finding good coverage and reducing your rates.
What Are Some Potential Reasons You Might Be Having Trouble Finding Homeowners?
There are a number of issues that can affect your eligibility for homeowners insurance. Here are the most frequent difficulties faced by California homeowners looking for coverage:
- Hazards on or around the property. For example, brush, vegetation, clutter, and other potential fire hazards could pose a problem.
- A “fixer-upper.” Dilapidation or older homes requiring updates such as a new roof may not be insurable until changes are made.
- Previous claims or lapsed coverage. A history of losses, claims, and lapses in coverage tell a story of higher risk making you less desirable to insurance carriers.
These same issues can also lead to higher rates if you are ultimately approved. If you’re frustrated by outrageously high premiums or an inability to get insurance coverage, you may be searching for solid solutions. What can you do to improve your eligibility and lower your rates?
Top 5 Strategies to Improve Your Insurance Eligibility, Potentially Lowering Your Premiums by Up to 5%
When people ask us how they can lower their premiums or get approved for homeowners insurance, we recommend following these essential tips. By investing time and resources into these areas, you will enhance your chances of securing better coverage and lowering your rates.
Top 5 Strategies for Securing Better Coverage
1. Create “defensible space” and reduce fire risk
2. Consider Renovations to Improve the Home
3. Install Security Systems
4. Avoid Unnecessary Claims
5. Update Old Systems
Here, you can access the step-by-step breakdown of these 5 strategies, plus additional tips to consider when finding insurance coverage in California.
What About California FAIR Plan Coverage? Is it a Good Alternative?
California FAIR Plan coverage provides very limited, fire-only coverage for homeowners who struggle to find insurance elsewhere. It’s important to understand that a FAIR Plan policy is different from a traditional HO3 (Homeowners Policy), which typically covers the home, belongings, and liability in a number of situations. The FAIR Plan selectively covers property damage to the home due to fire, lightning, smoke, or internal explosions. Optional additional coverage can be purchased for windstorms, hail, explosions, riots, aircraft, or vehicles, in addition to vandalism or malicious mischief. This leaves significant gaps in protection for other common events, such as water damage, theft, or personal liability.
Many homeowners attempt to bridge these gaps by adding a Difference in Conditions (DIC), also called a Wrap or Companion policy to their FAIR Plan. While this can provide some additional coverage, it still does not always measure up to the comprehensive protection of an HO3 policy. DIC policies fill certain gaps left by a FAIR Plan, but they can be costly and often lack the broad, seamless coverage that a standard HO3 offers. This can result in paying more for two separate policies that still don’t provide the same level of protection you would get from a single, well-rounded homeowners policy.
Proposed changes would expand FAIR Plan coverage, but it’s not currently clear if or when these changes might take place. In the meantime, we recommend working with an experienced insurance expert from an independent brokerage to thoroughly explore all options before signing up for a FAIR Plan. Fortunately, there are still companies writing HO3 policies in California—you just have to know where to find them.
That’s where we come in. At Defensive Insurance Services, we have helped homeowners secure coverage in high wildfire-risk areas for over 55 years. Trust us to find the best coverage options available for your home.
Secure Your Peace of Mind Today!
At Defensive Insurance Services, we’re dedicated to helping you navigate the complexities of homeowners insurance.
Contact Us Today to assist you in securing broader coverage and lower premium rates on your home insurance.
Contact Us Today!
📞 (415) 897-4113
🌐 Defensive Insurance Services
Defend your home, Defend your future!
