Residents in Morgan Territory and other high-fire-risk areas are concerned following recent statements made by State Farm and Allstate insurance firms that they will no longer provide new fire insurance policies in California.
Fire insurance (Source: Google Image)
Fire Insurance Plan: Where to Insure Properties?
The California FAIR PLAN insurance organization or secondary “surplus lines” insurers are currently the only options for homeowners to purchase coverage. Lauren Fenner, the owner of a property in Morgan Territory, found it stressful to attempt and renew her policy with big insurer GEICO and found it difficult to acquire alternative fire coverage through any of the state’s well-known carriers.
She stated, that they have already tried to contact several different companies, and they all claimed they weren’t writing California policy. However, they weren’t surprised because it had happened previously, but they began to call around because they were so concerned.
Due to the presence of homes and other natural features that are bordered by high-fire fuel areas, Morgan Territory and Marsh Creek have trouble getting fire insurance. Obtaining coverage might be difficult for those who are seeking to buy or sell a house.
Weichert Realtors owner Julie Rogers reported hearing from other real estate experts that prospective purchasers of Morgan Territory houses had second thoughts about moving to the area due to the elevated cost of insurance.
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No Fire Insurance: Rejection of Loans
State Farm stated that while it will no longer be writing new fire insurance policies, it will still be servicing any existing coverage. According to reports, several corporations have canceled their current insurance in highly high-risk regions.
The Insurance Information Institute’s Janet Ruiz denied that any of the 115 state-approved fire insurance carriers in the state would refuse to offer new policies, but she did not name any individual businesses that were. This insurance industry assertion was refuted by Fenner’s experience. following her policy.
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