Fire Insurance and Your Home: Are You Protected?
Recent fires across Northern California and the impending July 4th holiday may have you wondering just how protected your home really is against fire insurance-wise. If you’re in one of the several areas in the Bay Area that are prone to fires (click here for a Mercury News map), you may even be questioning whether or not you can obtain fire insurance coverage.
The good news is: yes you can.
The California FAIR (Fair Access to Insurance Requirements) plan, gives you access to basic home insurance, even if your home is in a high-risk fire region, provided all the underwriting guidelines are met.
FAIR insurance is known as the “insurance of last resort,” meaning that you qualify for FAIR if you’ve been rejected by three insurers or if you live in one of the urban or brush areas designated for FAIR plan approval in California. For a list of these areas or for more information on FAIR, go to their web site www.cfpnet.com.
Also, your homeowner’s insurance policy, often required by lenders before they will give a borrower financing, usually insures against losses suffered in a fire, whether the fire started in your kitchen or in a mountain canyon far away.
Though many insurers underwrite for fire insurance, what they consider an acceptable “risk” varies. Generally, insurers want the property to have adequate brush clearance and the ability for a fire vehicle to get to the property easily, turn around and get out quickly. It’s best to consult your property insurance advisor for details on your homeowner’s insurance specific requirements.
If you’re currently looking for residential insurance, The California Department of Insurance (CDI) has several tools on their web site that will help you gather information on insurers throughout the state, including:
- Consumer information guides
- Insurance company profiles
- A Homeowners Premium Survey (comparison of insurance rates in California)
- A Consumer Complaint Study
If you have additional questions about fire insurance or need assistance, contact the California Insurance Commission through their web site or help line.
California Insurance Commission web site: http://www.insurance.ca.gov/
Consumer Hotline: 1-800-927-HELP (4357)
Want information on how to protect your home from fire?
Click here.
Here’s to having a SAFE and happy 4th of July for everyone in the Bay Area!
