Understand why and how to get home insurance if your insurance company dropped you after years of coverage.
What will you do if your long-time insurance providers suddenly drop you off? After many years of coverage, homeowners are getting dropped by their long-term insurance providers, like State Farm or Allstate. This can be a huge shock, especially if you’ve been paying your homeowners insurance premium for 10, 20, or even 30 years.
What’s happening with homeowner’s insurance? Many sellers are encountering issues where people who bought homes, thinking of insurance as a fixed monthly payment, now realize it’s a major concern.
For example, I have a client in Colfax whose homeowner’s insurance premium went up to $12,000 a year after being dropped. That’s $1,000 a month, with a $9,000 deductible.
This issue isn’t isolated; it’s affecting many people across California. For instance, consider areas like Los Lagos. Although it isn’t in the mountains or surrounded by trees, it’s still classified as a high-fire zone. Similarly, we recently sold a house in Orangevale, which is also designated as a high-fire zone.
Why is this happening? FEMA updates its maps regularly, which can change the areas classified as flood zones or high-fire zones. If your home is newly marked in one of these zones, your current insurance provider might stop offering coverage in that area.
If this happens, what should you do? Here are some quick tips to help you navigate this tricky situation:
- Reach out for help. We work with a range of insurance brokers who can help you find the right coverage. Unlike agents tied to one company, brokers can shop around and compare options from multiple insurers, which could save you money. For instance, we recently assisted a family in Penryn who lost their insurance. A broker helped them find a new policy that met their needs. In another case in Colfax, we connected a homeowner with a broker, reducing their premium from $12,000 to $9,000 a year.
- Stay proactive. IIf you’re being dropped by your insurance, don’t ignore the problem and think, “It’s fine; my house is safe.” That mindset can leave you unprotected when you really need coverage. It’s crucial to take action before it’s too late.
- Do your research. If you want to manage this yourself, start by searching for insurance brokers online. Look for brokers who represent companies with a triple-A rating, as this indicates they have the financial strength to cover claims when you need them.
Please reach out to us so we can provide answers. Homeowner’s insurance is no longer an afterthought; it’s something we all need to think about seriously.
If you have any questions about real estate, feel free to contact me or my team at (855) 935-6673 or email [email protected]. You can also visit our website, madeformorealty.com. We’re here to help you navigate these challenges and find the best solutions for your insurance needs.