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Jul

2023

What is California’s FAIR Plan?

For California residents facing challenges in obtaining homeowners insurance due to various risk factors such as living in high-risk areas or having older properties, the California FAIR Plan (Fair Access to Insurance Requirements) offers a potential solution. The FAIR Plan is designed to provide basic fire insurance to high-risk homeowners who are unable to obtain coverage through preferred property insurers. It operates as a shared market where licensed insurance companies collaborate to share the risk of insuring California homeowners who do not qualify for voluntary coverage.

While the coverage offered by the FAIR Plan is more limited than a standard homeowners insurance policy, it still protects homeowners from shouldering the full cost of a loss out-of-pocket. The basic FAIR plan typically covers named perils such as fire, lightning, internal explosion, and smoke. However, additional coverage options can be added at an extra cost to provide a more comprehensive level of protection.

Eligibility for the California FAIR Plan is contingent upon meeting certain requirements. Applicants must own a single-family home, townhome, condo, or rental unit in California, and the property must fulfill specific building requirements. However, the FAIR Plan does not cover vacant homes that are unoccupied for 50% of the year, properties with existing unrepaired damages, or homes involved in illegal activities based on state and federal laws.

Regarding the cost, FAIR Plan premiums vary depending on several factors, including the property’s location, age, condition, proximity to a fire station, claims history, coverage types, and deductibles chosen. However, FAIR Plans are generally more expensive than standard home insurance policies. On average, California homeowners pay $1,428 for $250,000 in dwelling coverage, but with a FAIR Plan, homeowners should expect a higher rate.

To acquire a California FAIR Plan, homeowners need to go through a licensed insurance broker. The broker will first determine if the homeowner qualifies for preferred homeowners insurance coverage through the traditional marketplace before considering the FAIR Plan. Once the application is completed and approved, the first month’s premium must be paid to activate the coverage.

In response to increased wildfire risks, major insurance companies have stopped, canceled, or paused homeowners insurance policies in California. As a result, the demand for FAIR plan coverage has risen.

KEY FEATURES OF THE FAIR PLAN:

It’s a Last Resort Option:
The California FAIR Plan serves as an insurer of last resort for homeowners who are unable to obtain coverage through the private insurance market due to high-risk factors, such as living in areas prone to natural disasters like wildfires or earthquakes.

It Offers Very Basic Coverage:
The FAIR Plan provides basic property insurance coverage, usually focusing on named perils like fire, lightning, internal explosion, and smoke. However, the coverage is generally more limited than a standard homeowners insurance policy.

It Operates Though a Shared Market:
The FAIR Plan operates through a shared market system, where licensed insurance companies participate and share the risk of insuring high-risk homeowners who do not qualify for voluntary coverage.

You Can Purchase Additional Coverage Options:
While the FAIR Plan offers basic coverage, homeowners have the option to purchase add-on coverages at an additional cost to customize their policies and enhance protection.

It’s Designed for High-Risk Areas:
The plan is specifically designed for homeowners residing in high-risk areas where private insurers are hesitant to provide coverage due to the increased likelihood of potential claims.

Eligibility Requirements:
Homeowners must meet certain requirements to qualify for the FAIR Plan. The property must be a single-family home, townhome, condo, or rental unit in California, and the home must fulfill specific building requirements.

Higher Premiums and Deductibles:
FAIR Plan policies often come with higher premiums and deductibles compared to standard insurance policies due to the higher risks associated with the covered properties.

Association with California Earthquake Authority:
FAIR Plan customers can purchase a separate earthquake insurance policy through the California Earthquake Authority (CEA) if they desire additional earthquake coverage.

It’s essential to keep in mind that insurance policies and regulations can change over time, so for the most up-to-date and accurate information about the California FAIR Plan, it’s best to consult your agent.

May

2023

Allstate & State Farm Stop Writing New Property Coverage In California

Allstate, the state’s fourth-largest property and casualty insurance provider, and State Farm, the state’s largest provider, have stopped selling new home, condominium or commercial insurance policies in California. The insurance giants are the latest to say than they will no longer offer coverage in California, citing worsening climate and higher building costs that have made it harder to do business in the nation’s most-populous state. The moves by Allstate and State Farm may lead more home owners in the state to lean on the FAIR Plan, a state-offered “insurer of last resort” in high-risk fire areas.

California’s Department of Insurance says that the policy changes are related to factors “beyond our control, including climate change, reinsurance costs that have impacted the entire insurance industry, and global inflation.” Unfortunately, this issue is likely to spread to other carriers in much the same way as it has in the auto insurance market, so what do you need to know?

• Make your premium payments on time. There will no longer be a grace period for late payments and, more than likely, you will not be able to get the policy reinstated at the same price.
• Set your payments up on auto pay, with a few days cushion, to ensure there are no issues
• If your policy is already on auto pay, confirm that the payments are coming out of your account as expected.
• Expect your premium to increase with your renewal and know that there maybe a waiting period before your coverage goes into effect.
• Respond immediately to any requests from your insurance company, and call your agent if you have any questions or need clarification.

May

2023

What is Accidental Death Insurance, and Why Should I Consider Purchasing it?

Accidental death insurance is a type of insurance policy that provides financial protection in the event of an accidental death or certain types of serious injuries. It pays out a minimum of $100,000 to your designated beneficiaries if you die or suffer specific injuries due to an accident.

Here are some reasons why you might consider adding an accidental death policy to your insurance portfolio:

• You get 100% of your premium back at the end of the 20 years if you have not made a claim.

• Guaranteed coverage, with no medical exam, as long as your premiums are paid on time.

• Accidental death insurance specifically covers accidents, which means it can provide an additional layer of protection beyond other types of life insurance policies. It can offer financial support to your loved ones in case your death is caused by an accident.

• The cost of the policy is about $30 a month, that will never change over the 20 year life of the policy, but the benefits paid to your loved ones increase every year. This affordability can make it an attractive option, especially for individuals who may not qualify for or afford higher-cost life insurance due to health issues or other factors.

• Accidental death insurance can supplement your existing life insurance coverage. While life insurance typically covers death from all causes, accidental death insurance focuses specifically on accidents. By combining both types of coverage, you can enhance your financial protection.

• Purchasing accidental death insurance can provide peace of mind to individuals who participate in activities like extreme sports, hazardous occupations, or frequent travel. Knowing that there is an additional safety net in place can alleviate concerns and provide a sense of security.

It’s important to note that accidental death insurance only covers accidents and does not provide coverage for deaths resulting from illnesses, natural causes, or suicide and does not provide coverage for deaths resulting from illnesses, natural causes, or suicide.

Policy terms and conditions can vary, so we recommend that you thoroughly review the policy with your agent before making a purchase.

FILL OUT THE APPLICATION

May

2023

What In The World Is Going On With My Auto Insurance?!?!

If you’ve received a renewal notice for your auto insurance, or tried to purchase a new policy, you may have noticed that options are extremely limited and the cost is through the roof. Here’s what you need to know:

1. The California Insurance Commissioner has approved more than $1 billion in premium increases at the state’s top six companies, which insure about 48% of California registered vehicles.

2. Many companies have temporarily stopped writing new business in California, while others are implementing paid in full requirements or hold times between when you purchase your policy and when your policy becomes active. These can run anywhere from 3 days to 10 days, and you must pay for this coverage in advance.

3. People are driving about as many miles as they were before the pandemic, but they’re doing so less safely and causing more accidents.

4. The cost of your premium is directly tied to the money your insurance company pays out when you file a claim. This includes parts and repairs, rental cars, medical bills. Because all of those sectors are experiencing price increases or supply chain issues that cost is going to be passed along to you.

SO WHAT DO I DO?

This is one of those times where having an independent agent is a huge asset if you run into trouble, we’re here to help you in any way possible. In the meantime, we STRONGLY recommend that you do the following:

1. Make sure your current policy is on auto pay. If your policy cancels because of a late payment, even a single day, there will be consequences you may not have faced in the past. If we are able to reinstate the policy with the same company, the cost of your premium is going to go increase, sometimes by as much as double, in cost. Additionally, you will no longer be able to reinstate your coverage on the same day and will be subject to the same 3-14 day waiting period. If we need to place your policy with a new company you can expect the same thing, higher premiums and a waiting period before your policy becomes active. In all of these situations you will be required to pay some or all of the policy in advance.

2. Plan ahead. If you’re looking for a new car, know your policy expiration date is coming or aren’t going to be able to make your payment in time, get in touch with us as far in advance as possible by email or calling us at (760) 271-6651. The more we know about your situation the more helpful we can be.

3. Expect to pay more for new coverage and expect to pay a larger portion up front, at least for now. We’re here to help, but please understand that options are limited right now.

Mar

2023

Spring Cleaning Tips

Spring cleaning is great way to shake off the rainy weather and dive into spring. Taking the time to freshen up your home gives you a head start on that spring and summer beach weather, but as you’re cleaning there are a few easy maintenance things you can do to help prevent expensive homeowners claims. Here are some tips to make the cleaning part as easy as possible and a list of maintenance items you can tackle while you’re at it.

CLEAN ONE ROOM AT A TIME
Keep the cleaning manageable by making a plan for each room to help you stay organized and to remind you of the areas that need extra attention. It’s ok skip areas that are cleaned regularly, and focus on the parts of your home that were neglected over the winter.

GET RID OF THE CLUTTER
Clutter is a problem for all of us, and the thought of getting rid of it can be panic inducing. Try taking a systematic approach to make things manageable. Start by identifying problem areas and then sort everything into one of these categories—throw away, give away, put away or store for late use.

TACKLE SEASONAL CHORES
Make sure that you don’t forget to tackle season chores so you can enjoy your home and your backyard during spring and summer. Wash the windows (inside and out), give the barbecue a once over, clean the pool, refresh the patio furniture. When you’re done with that don’t forget to clean and store all those winter clothes, bedding and decorations

QUICK MAINTENANCE TASKS:
Check the batteries on your smoke or carbon monoxide detectors, garage door openers and car keys
Clean or replace HVAC filters
Check your water heater and air conditioning
Check the seal on windows and doors
Trim and/or remove any branches or shrubbery that might be a fire hazard
Clean the gutters and spouts after all the rain
Check your driveway and sidewalk for cracks or uneven surfaces that might cause injuries

Mar

2023

Types of Small Business Insurance You Might Need

As a small business owner your time and wallet are likely stretched thin, especially right now, and you might be asking yourself if you really NEED insurance. Making sure that you’re covered allows you to take smart risks on your business, protects you from property and other damage and gives you a safety net in case of an accident involving a customer or employee. So what are the different types of business insurance that you need to be looking at?

GENERAL LIABILITY INSURANCE
As a small business owner, you may be legally responsible if another person gets hurt or incurs damage to their property while at your business or because of something you did. General Liability insurance provides insurance coverage for your business in the case of claims made by others including bodily injury, property damage, or personal injury.

ERRORS & OMISSIONS INSURANCE
Errors & Omissions (E&O) insurance is useful if you or your employees provide a service that a client could claim is inadequate or tied to negligence. For example, if you are a real estate agent, you may find yourself facing a lawsuit if a homeowner finds defects in their new property after closing. This homeowner may allege you did not disclose the defects and try to collect based on the diminished value of the home.

WORKERS COMPENSATION INSURANCE
Workers compensation insurance protects your employees and your business from work-related accidents, illnesses, and even death. Workplace injuries happen in even the safest of workspaces. Even if the employee has health insurance, you are responsible for medical costs for a job-related injury or. The worker is also to a percentage of their wages if they are unable to work due to their injury or illness. These costs are covered by workers compensation insurance.

COMMERCIAL AUTO INSURANCE
Commercial auto insurance covers vehicles used for business and the people who drive them. If you or a driver of your business vehicle causes an accident that injures another person or damages their property, they can file a claim on your policy and bring a lawsuit against you or the driver.