Fire Insurance Coverage

This is a common question we get asked. Why is the insurance coverage different from the market value of my home? Market valuations consider many things like the land value, a view, unique features, etc. Reconstruction values consider primarily the building costs in the area and site access. An easy way to think about this is to picture two structures that are the exact same in construction. The first is located on a beach, the second is located under a freeway overpass. Both should cost (all things being equal) the same to rebuild. But the market value of both homes should be much different.

With the rise of AirBnB and VRBO there has been a tsunami of entrepreneurs joining the short-term rental business, but buyer beware. Occupancy is one of the key material factors that determine how to correctly and accurately insure a property. Most policies include key provisions that state coverage may be void if the correct occupancy has not been disclosed and reflected on the policy. Accordingly, insurance companies have taken a tough stance on claims stemming from vacation rentals that do not properly indicate the short-term rental exposure. For the most part, coverage is similar but with key provisions. In some instances, the forms are completely different and reflect commercial/business liability as many insurers think these forms more accurately account for the business operations on the premises. As with all insurance, the devil is in the details. Talk with a professional at Pacific Premier Insurance for more information on short-term rental coverage.

These situations are frustrating to say the least. More Californians than ever before have received non-renewal notices from traditionally reliable insurance companies simply because of where the home is located or because they filed a claim.

Pacific Premier Insurance is an ‘Independent Agency’ meaning we work directly with multiple insurance companies unlike most big-box companies advertising on television. This makes us uniquely positioned to respond to this crisis. Just because you received a non-renewal notice from your long time agent or insurance company does NOT mean you are uninsurable. If this has happened to you, talk to a professional at Pacific Premier Insurance today. We can explain your options and provide a solution that best meets your concerns.

Unlikely. It may not be something your current insurance company is not interested in insuring due to fire risk, but it’s unlikely to be a problem we haven’t seen and cannot solve for you. Call us today, we can take a brief application to tell you what options we have that are available to you.

Generally, no. Independent agencies like ours are primarily compensated by the various insurance companies we have contracts with. The amounts are negotiated in advance and tend to be similar from company to company. If a client were to call each insurance company and try to obtain quotes on their own, the cost would likely be the same.

There are some policies/insurance companies that require the agency to provide additional support, such as act as the billing department. In these instances a fee may be assessed but it must be transparent and agreed to before the policy is purchased in accordance with California law.

For some California homeowners the California Fair Plan can be the best or only available option based on the location and attributes of your home. However, not all insurance agencies have access to multiple insurance companies. In this instance, if they receive a declination they may say the CA Fair Plan is your only option. Talk to an independent agency like Pacific Premier today. We access dozens of highly rated insurance companies and can help you determine what options outside of the California Fair Plan may be available to you.

The CA Fair Plan is a private association comprised of all insurers licensed to write property insurance in California. All insurers conducting property business in California must be a member of the Association. FAIR Plan profits and losses are shared by its members in direct proportion to their market share of property insurance written in California. There is no public funding, or taxpayers’ monies involved. In other words, the CA Fair Plan is backed by every insurance company writing homeowners insurance in California. As a result, they are a very reliable option with regards to solvency and claims payments.