Post-Fire, Insurance Agents Enjoy New-Found Popularity
By Fawn Nekton
Once upon a time being an insurance agent was viewed as a rather boring, vanilla occupation. When introduced in a group, heads would nod politely, and things would move on, hopefully to someone with a more exciting career, like a…well anything’s more interesting than insurance, right?
Not so, these days. Insurance agents are the life of the party now! Everyone has a question, a problem, or a “what if” scenario they’d like to talk about. And it’s great! The level of client engagement we’re seeing at Gaffney Insurance is unprecedented, and we welcome it.
Our door is open, and folks— both clients and not— have been coming in and reviewing their coverage, asking their questions, and hopefully, getting some peace of mind.
One year after the fires devastated our County, there are still specific questions and concerns about how claims (real and theoretical) will be handled: whether insureds have enough coverage; what might happen if someone chooses not to rebuild after a total loss; will insurers continue to write and renew policies in our area? All very good questions.
In this article I’d like to jump into the topic of insurability and insurance availability, and hopefully answer a few of these questions.
First and foremost, yes, you’ll still be able to get insurance. If your carrier has non-renewed you or you’re buying a home and having trouble getting a quote, contact a broker, such as our office. We have access to a whole array of carriers with varying appetites and can find insurance for all types of risks.
Insurance carriers writing homeowners coverage in California have always run hot and cold— sometimes aggressively seeking market share, then reassessing their risk and limiting or stopping writing new policies. The pendulum is always in motion in the insurance industry. These fluctuations are not as capricious as they may seem, and your elected insurance commissioner (currently Dave Jones) and their office play a watchdog role in all of this.
I’m not suggesting that insurance companies aren’t in the business for profit— they are— just reminding you that their actions and reactions are overseen by a governing body, which regulates the market and ostensibly protects consumers.
If you’re being non-renewed, or worried about that happening, you’re not alone-- it’s happening to a lot of people, many of whom are our clients. In fact, my own home insurance is being non-renewed on October 1st! Insurance carriers such as Nationwide and Allied, Pacific Specialty, andThe Hartford, to name a few, are “re-underwriting” policies they’ve had for years— decades even. In the process, they’ve found a multitude of “reasons” to non-renew clients.
Post and pier foundations, size of the home (too big or too small), width of the road, type of heating or type of roof, and of course, the fire-line score are just a few of the reasons we’ve seen recently. Almost 100% of the time nothing has changed with the home, the only thing that has changed is the insurance carriers “underwriting guidelines.” Gone are the days of “grandfathering” or carrier loyalty. You may find yourself being non-renewed from a carrier you’ve been insured with for decades.
So, what can you do?
Sometimes you can mitigate the so-called “exposure” by changing something such as installing a hard-wired thermostatically-controlled permanent heating source, or trimming trees and clearing brush from around the home.
But often times what the insurance carrier really wants is to not be insuring you, and practically no amount of mitigation is going to satisfy them right now. Remember the pendulum, because it’ll swing the other way eventually!
In the meantime, know that you’ll be able to find insurance, though it may take some effort and it will undoubtedly cost more than you’re currently paying. My insurance is going to go from $971 to $2544. I’m not happy about that, but I understand that’s the way it is right now.
And, of course, call us! We can help you find new coverage, figure out how to mitigate exposure, or answer any other questions you may have. We’re happy to help.
Fawn Nekton Gene Gaffney Insurance Services, Inc.
