PART 2 – California Homeowner’s Insurance Crisis

Aug 29, 2024 | Weekly Wrap-Up

Last week we focused on the state of homeowner’s insurance in California.  This week, let’s look at some steps a homeowner can take to prevent their insurer from issuing a non-renewal or cancellation of their homeowner’s policy.

Insurers are now completing inspections -both in person and aerial(!!) of homes.  Here are some things you can do to keep your home insurable:

  • Maintain your roof! Debris, algae, moss or deterioration or discoloration are signs the roof is not well maintained or is past its lifespan.  This can trigger a non-renewal
    • Often there is no second chance given for the roof to be cleaned, repaired or replaced. Non-renewals are not being rescinded.  A new insurer will not write a policy for a home with a roof in poor condition.
    • If your roof is older than 20 yrs. it should be inspected by a licensed roofer and that inspection report should be retained and available to send to your insurer showing no repairs or replacement needed
  • Trim tree limbs so they are not hanging over the roof of the home
  • Have at least 100ft. of clearance of any ‘unmanaged’ vegetation from the home
  • Install ember resistant vents
  • Enclose eaves with non-combustible materials
  • Replace wood decking and siding with fire-resistant/non-flammable siding
  • Update electrical – no knob and tube wiring allowed, and the breaker box cannot be more than 25 yrs. old
  • Update plumbing – can be no more than 25 yrs. old and your water heater can be no more than 15 yrs. old
  • Update heating system – can be no more than 25 yrs. old, regardless of maintenance

Finally, do not file ANY water claims.  In fact, do not file more than one claim regardless of the amount of the claim or type of the claim in a five-year period.

Filing a water damage claim or two claims will likely result in a notice of non-renewal.  Finding a new policy, with a prior claim, will be very difficult.  If a homeowner needs to purchase a new policy, there is actually the possibility of NO policy to be found with the exception of the California FAIR Plan, which is a woefully underfunded policy.