Homeowners Insurance Resources

Residential Fire Insurance Letter Opens in new window

Residential Fire Insurance Advocacy Letter Now Available 

Need help finding fire insurance for your home? The increasing frequency and severity of wildfires in California have heightened the risk to homes and communities, leading to significant challenges in the residential fire insurance market. Homeowners across the state, particularly in areas prone to wildfires, are confronting rising premiums, coverage reductions, and even policy cancellations.

In RPV, the City has received numerous reports of residents facing increased premiums or losing their fire insurance coverage, reflecting the broader, statewide insurance market challenges that have prompted concerns among residents regarding the availability and affordability of their fire insurance. 

Recognizing the issues of rising premiums, coverage reductions, and policy cancellations, particularly in wildfire-prone areas, the City's Emergency Preparedness Committee (EPC) collaborated with City Staff to create a comprehensive insurance resource letter (PDF). 

This advocacy tool is designed to facilitate effective communication between RPV residents, businesses, and their respective insurance providers. It underscores the comprehensive and ongoing fire risk reduction efforts undertaken by both the City of Rancho Palos Verdes and the Los Angeles County Fire Department. These detailed measures demonstrate a strong commitment to minimizing fire hazards and enhancing community safety. The information in the letter provides a solid foundation for homeowners and businesses to advocate for the maintenance of their existing insurance policies and to potentially negotiate reduced premium rates.

What Can I do if I Receive a Cancellation Notice?

If you receive a cancellation notice for your fire insurance, it's important to engage with your insurance carrier directly. Discuss the comprehensive efforts made by both the City of Rancho Palos Verdes and the Los Angeles County Fire Department to mitigate wildfire risks. Highlighting these efforts can be crucial in maintaining your insurance coverage.

City of Rancho Palos Verdes Efforts to Help Reduce Wildfire Risks

  • Year-Round Fuel Modification: Regular maintenance of city-owned landscapes and open spaces near residential areas, especially through our robust annual weed abatement program, creates defensible spaces and reduces fire fuel load.
  • Goat Grazing for Fuel Modification: Employing an eco-friendly approach using goats for fuel modification on city-properties since 2008, effectively reducing fire risks and promoting native vegetation.
  • Advanced Emergency Preparedness Tools: Implementation of the Peninsula-wide PVPReady evacuation management tool and partnership with Pano AI for early wildfire detection using AI-enhanced cameras, significantly improving emergency response capabilities.
  • Innovative Firefighting Resources: Installation of the HeloPod firefighting dip source at the RPV Civic Center, allowing firefighting helicopters to quickly refill water supplies and enhancing response times during wildfires.
  • Community Safety and Education Initiatives: Organizing firescaping workshops, producing home hardening videos, and disseminating monthly emergency preparedness tips. Collaborating with Southern California Edison to harden utility lines and pursuing grants for safety improvements.
  • Comprehensive Mitigation Planning: Adoption of the Multi-Jurisdictional Hazard Mitigation Plan outlines strategies for future wildfire mitigation.

What if I can't find insurance? Here's a last-resort option.

If after shopping the market you are still having difficulty obtaining residential insurance, you may want to contact the California FAIR Plan to explore your coverage options. As the insurer of last resort, the California FAIR Plan should only be considered after a diligent search for coverage in the traditional insurance market. If you are turned down or non-renewed by your current insurance company or are otherwise in need of coverage, you may apply for coverage under the FAIR Plan through an agent or broker licensed to sell property insurance, or you may contact the FAIR Plan directly at 1 (800) 339-4099.

Please note that the FAIR Plan only provides coverage for the losses caused by Fire or Lightning, Internal Explosion, and Smoke. For an additional premium, Extended Coverage (windstorm, hail, explosion, riot or civil commotion, aircraft, vehicles, and volcanic eruption) and Vandalism or Malicious Mischief may be added to the policy. 

Since the FAIR Plan policy does not cover all the perils insured under a traditional homeowners' insurance policy such as theft or liability, you may want to consider purchasing a separate Differences in Conditions (DIC) policy in addition to the FAIR Plan policy. DIC insurance is designed to fill in gaps in insurance coverage. It provides expanded coverage for some perils that are not covered by the FAIR plan policy. This page provides a list of carriers currently offering DIC policies. You may also wish to contact an agent or broker to help you shop around for this type of coverage.

California Department of Insurance (CDI)

The CDI provides several resources on its website www.insurance.ca.gov to help consumers understand home/residential insurance. These resources include informational guides, a premium comparison tool, and a new coverage comparison tool to compare different insurance policies.

Contact Information

News

Commissioner Ricardo Lara announced the enforcement of California’s first catastrophe modeling regulation, a key element of the Department of Insurance’s Sustainable Insurance Strategy.

  • The regulation requires major insurance companies to increase coverage in wildfire-prone areas, offering homeowners and businesses greater options and market stability. 
  • For the first time, catastrophe models must account for wildfire mitigation efforts, ensuring recognition of billions invested in community safety measures like home hardening. 
  • The Department will begin accepting model applications starting January 2, 2025, with the regulation set to reshape insurance coverage in the coming months.

What it Means: Major insurance companies must increase the writing of comprehensive policies in wildfire distressed areas equivalent to no less than 85% of their statewide market share, whereas there is no current legal requirement today for insurers to commit to providing any coverage in high-risk areas. Smaller and regional insurance companies must also increase their writing.

Learn more: https://www.insurance.ca.gov/0400-news/0100-press-releases/2024/release062-2024.cfm

Resources Offered by CDI

Safer from Wildfires

Being Safer from Wildfires can help with your insurance

Safer from Wildfires is a ground-up approach to wildfire resilience with three layers of protection for the structure, the immediate surroundings, and the community. Following these achievable steps can help you save money on your insurance. Safer from Wildfires was created by an interagency partnership between Insurance Commissioner Ricardo Lara and the emergency response and readiness agencies in Governor Gavin Newsom's administration. 

Every action under Safer from Wildfires will qualify you for an insurance discount. By doing more, you can save more. Read the full text of the new Safer from Wildfires insurance regulation.

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