Agent/Broker, Daniel J. Mabry Insurance
7 months ago
Many fire prone areas in the west have caused huge losses for insurers and those losses are of course being passed on to customers.
In Northern California we are experiencing a triple whammy. Increased requirements for Volunteer firefighters is causing a reduction in manpower and a number of stations have lost ISO status (ISO 9/10). Some CDF stations are only seasonal. To an insurance underwriter that station does not exist. What happens if a fire occurs because of Christmas lights and the station is closed for the winter?
Much of rural northern California exists in "SHIA" zones.Special Hazardous Interface Areas (Brush). Insurance costs more in these areas. The maps show on google over addresses. California's largest insurer sent a memo out in 2010 explaining they no longer will write coverage for high ISO areas. The second largest insurer followed.
A Cottonwood Client of California's largest insurer saw his homeowner's insurance go up from $700 per year to $2,800 per year because the local volunteer firestation lost it's rating.
During the 2012 Ponderosa fire one company was suddenly calling to review every policy in Shingletown for original application "errors" or "fraud" for possible cancelation in the fires path.( Some people bought on-line claiming they have fire-hydrants out front , ect)
As a Realtor, for E&O purposes, make sure your clients know they will be paying more for insurance, and they should consider the cost of 200 feet of "fire safe" landscape around any rural property to obtain the best rates.
Call me anytime,
Dan in Cottonwood Ca. -og74539