Wildfire in the background of a community

What to do if your home insurance is not renewed: up-to-date information for California policyholders

For many homeowners, choosing and purchasing property insurance is often a “set it and forget it” scenario. Federally-backed mortgage loans require homebuyers to purchase insurance, but how many homebuyers shop around for the best deal, discuss coverage details with an insurance agent, or think about looking for a new carrier after 5, 10, or 20 years? Dramatic, frequent, and increasing property losses due to wildfire in California are forcing policyholders to think differently about their insurance, since a growing number of companies are discontinuing or “non-renewing” residential property insurance policies in areas deemed at high risk. More and more California property owners are being forced to seek out insurance that adequately covers their risks at an affordable price. A new resource from Stronger California, an insurance trade coalition, can help consumers do just that.

A new fact sheet on non-renewals helps homeowners understand their consumer protections under California law and gives helpful links for finding a new insurance carrier through a website or by talking to an agent or broker. It also directs consumers to options such as the California FAIR Plan and surplus lines insurers. Since a homeowner needs insurance to keep their mortgage, and most people cannot afford to rebuild and recover from a wildfire out of their own savings, it’s critical that consumers take action to educate themselves and seek out the best coverage they can afford. NFPA recognizes that property insurance is the primary and largest financial safety net for recovering from disaster-caused property damage including wildfires. It’s vital that insurance remains available to support the recovery and rebuilding of homes, businesses, and communities.

While the insurance market in California is challenging, insurance experts are working to educate consumers about their choices as well as the things they can do to reduce their likelihood of wildfire loss and the possibility of losing their insurance coverage. The Stronger California coalition is calling on regulators, communities and insurers to work together on a comprehensive solution to the wildfire crisis, that ensures homeowners in high-risk areas have access to comprehensive coverage at competitive prices. Californians can learn more about what they can do to stay physically and financially prepared on their website.

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Michele Steinberg
Director, Wildfire Division, Disaster safety educator, land use planning advocate. Believes we can end home destruction from wildfires.

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