House Fire high risk fire insurance

Getting Fire Insurance in High Risk Area

The past couple years have seen fires throughout California take dramatic and tragic turns.  The effects have been particularly harsh in Northern California where an entire city was destroyed and over 100 people killed.  Beyond the physical and human toll, this has now altered the entire fire insurance picture. So, what is the impact? How do you handle things when you live in a high risk area?

Over 300,000 homeowners are struggling to find a company to protect them and their assets.  Insurers have been cancelling policies for some justified and some seemingly unjustified reasons.

There are solutions, coverage is available thru the California Fair Plan, which has traditionally been considered the insurer of last resort.  Although the premiums are higher than what you have paid in the past, you can still obtain the coverage.  We recommend reaching out to an insurance agency appointed with the California Fair Plan to obtain a no obligation quote

According to their website, the California Fair Access to Insurance Requirements (“FAIR”) Plan was created in July 1968 following the 1960’s brush fires and riots. It is an insurance pool established to assure the availability of basic property insurance to people who own insurable property in the State of California and who, beyond their control, have been unable to obtain insurance in the voluntary insurance market.

The Fair Plan coverage should not be looked upon as whole and complete as it only covers the basic perils of fire, wind and hail and vandalism.  Homeowners need to consider additional coverage to pick up the “traditional” homeowner’s package coverages of theft, water damage and personal liability.  For instance, Farmers Insurance offers a Fair Plan “wrap around” or a “difference in conditions” policy that fills in the traditional coverage gaps the Fair Plan does not offer.

If you are having trouble getting fire insurance because you live in a high risk area or need questions answered about your home insurance, contact the team at Michael McGann Insurance Agency today to go over your options.