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Did you know that there is a nonprofit organization called United Policyholders (UP) that provides guidance when homeowners lose insurance? Please see tips below inspired by UP and check out their website for the most up to date information on the insurance market.
Home insurance dropped. Read this first.
If you’ve received a non-renewal notice from your home insurance provider recently, you aren't alone. While the news is frustrating, the most important thing to remember is that you have time. In California, insurers are legally required to give you at least 75 days' notice before a policy expires.
Here is how to navigate the transition smoothly:
1. Get the "Why"
Contact your current insurer immediately to find out exactly why you were dropped. If the reason is specific to your property, such as lack of defensible space or a roof in need of repair, you may be able to fix the issue and ask them to reconsider by providing documentation that the issue has been resolved, typically with timestamped photos or video.
2. Challenge the aerial imagery
Be aware that Insurers now frequently use high-resolution drone or satellite imagery to look at properties. Shadows or old data can lead to mistakes; be ready to provide updated photos of your own to prove the issue is resolved.
3. Search for a new insurance provider
Don't wait for the 75-day clock to run out. Start searching for a new provider as soon as you receive the notice.
4. Use your neighbors as a resource
If your neighbor across the street still has coverage, find out who their carrier is. Since that company is already comfortable with the neighborhood's fire risk, they are your best bet for a new policy.
5. Contact independent pros
Unlike agents who work for one company, independent agents can shop across multiple carriers to find the best remaining options for your specific area.
6. The FAIR Plan
If every traditional company says no, the California FAIR Plan is legally required to take you. It’s basic "last resort" fire insurance, but it ensures your mortgage remains in good standing while you keep looking for better options.
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