Wildfires are among the leading cause of home destruction in the State of California. To give you an idea, the US Forest Service recorded about 7,860 fires in 2019 alone. Unfortunately, it is common for home insurance companies to cancel home insurance policies for properties located in high-risk areas. For example, between 2015 and 2019, home insurance companies declined to renew or offer new home insurance policies for nearly 9,000 properties located in the wildfire-prone counties, including Orange County to Lake Tahoe, as reported by the New York Times. However, even if your insurer drops you, you should take the necessary measures to protect your property.
Some of the measures you can take to get back your homeowners insurance after being dropped include:
Dispute the Cancellation
Despite the reason behind the cancellation, there’s still a chance for your homeowners insurance cover to be reinstated. This won’t be an easy process, but there is no harm in trying. To be precise, simply file a dispute to the insurance company if you think your insurer has canceled your policy illegally. However, make sure you have strong evidence to defend yourself before the insurer. For example, your Comprehensive Loss Underwriting Exchange (CLUE) report should indicate a good track record of your coverage. In case you’ve filed multiple claims in the past, getting your coverage reinstated may be difficult.
Make the Required Repairs
Data from Statista shows that home remodeling expenses in the U.S. amounted to about $330 billion in 2019 alone. This shows just how seriously insurance companies take repairs. As a result, the only way to get your home insurance renewed is to conduct the necessary maintenance pointed out by the insurance company during the home inspection. In particular, old roofs are a disaster waiting to happen, which may cause the insurance company to cancel your policy. Therefore, make sure you repair the roofs, sinks, fixtures, and tiles to get your coverage back.
Relocate to Safer Zones
In 2019 alone, at least 90 natural disasters happened in the US, with severe thunderstorms occurring about 49 times, as per Statista. In this regard, some states are more prone to natural calamities than others. For instance, the State of Florida has experienced more hurricanes than any other country in the US, as published by the Information Insurance Institute (III). For this reason, relocating to safer cities such as Clermont, Florida, can save you from disasters such as wildfires, earthquakes, hurricanes, and thunderstorms, and help get your homeowner insurance coverage back.
Sometimes, the insurer may fail to renew your coverage even after filing a dispute and repairing your house. At this point, opting for another insurer will be appropriate. According to the National Oceanic and Atmospheric Administration (NOAA), there are over 2,500 homeowner’s insurance carriers in the U.S. With this much competition, it is relatively easy to switch insurance companies. However, if you switch insurers due to this, expect a higher cost of homeowners insurance and rates. A government Plan might also be an option to cover your home.
If your home insurance company drops you, take these measures to ensure your property is always insured. Additionally, contact the experts at First Insurance Solutions if you want to learn more about the home insurance policy. We will assist you with all your coverage needs.