The wildfires that have occurred in California in recent years have made headlines all over the world. The sheer scale of the fires in terms of area and the number of properties destroyed is sometimes hard to comprehend. People who live in California are quite rightly worried about how they will be affected by the fires. One thing that they may not have considered, but may face problems with, is getting their home insured.
Why Is This A Problem For Insurers?
Property insurers have been under a lot of pressure due to the amount of claims that have been made. Some people who live in areas that are prone to fires have had insurance companies refuse to offer policies. There is a concern that people who have had their homes rebuilt after a fire may not be able to insure them when the work has been completed. Even if insurance is available, it is likely to be very expensive.
Where Are The Problem Areas In California?
There are approximately three million homes on what is known as the wildland-urban interface in California. These are the areas on the borders of towns and cities where houses exist close to forests and grasslands. Homes that are built here are at a higher risk, but are still in need of good California fire insurance to protect them if a fire were to break out. The risk is that if people are quoted too much for their insurance, then they will try and make do without out in the hope that the worst will not happen. Of course, if it does, then people could find themselves in real financial difficulty.
Is California Doing Anything To Help Residents?
The state of California is taking action to try and help protect those people that may be at risk of losing their insurance. Insurers are required to justify any major increases in the cost of policies by proving that their costs have increased by the same amount. In theory, if the company has to make a large payout, then they should try to recoup this money over a period of twenty years so that premiums do not rise too rapidly. A law was recently passed that does not allow insurance companies to refuse an insurance policy until two years after a disaster has taken place.
Are There Any Alternatives?
One alternative that Californians may be able to turn to is the FAIR Plan. This was established to provide insurance to people that may otherwise not be able to get it. In California this only covers insurance for fire and so you will have to make sure that you have adequate insurance in place for things such as theft and other damage to your property. Checks will be carried out to ensure that you are considered to be uninsurable before you are offered insurance through FAIR Plan.
Is There Anything Homeowners Can Do?
Homeowners in California are also encouraged to take action to make their homes more fireproof. Taking advice from an expert is a good place to start as they will be able to tell you exactly what measures you need to take in order to protect your home from fire. If you can provide evidence that you have done this, then companies cannot refuse to insure your property.
