Selling Homeowners in California

[Jamie Miller]

We're independent brokers, writing with Nationwide, Travelers, etc. and have been absolutely hamstrung by the carriers' refusal of late to write policies in about half the state, especially in our area. I get it, California is on fire. And yes, there's the FAIR Plan. But does anyone have a good company/market for wildfire areas? We have a couple slim pickings that require an Accord for a quote, then it takes a couple of weeks for them to decline. Any suggestions very appreciated!

 

[Life Hawk]

I'm not a P&C guy. But the bottom line of any carrier's reason to be in business under any line is "Profit". When you can't make profit, you either don't offer the coverage or you do loose your business.

Although on a personal level I believe this situation has very political component, I'll just suggest that on it's face, is the serious issue of "Risk" that faces any carrier that would offer coverage.

Not the answer you where looking for I know. I do wish you the best in finding one that helps you continue to grow your business.

 

[Markthebroker]

I'm commercial p&c, but I can tell you in a high fire risk area, there is the Fair Plan, and Wildfire Defense Insurance Services, and that's about it.

 

[marindependent]

does anyone have a good company/market for wildfire areas?

Seriously - What do you think? No, there are really no good independent admitted options right now in California. PURE maybe. Send them to State Farm, right now they are taking almost all Owner Occupied dwellings. [We will see how long that lasts.] Other than the obvious, the additional issues are with the reinsurers and to some extent the DOI. It is not going to get any better anytime soon.

Next get really solid with DIC/Companions. Not all DIC/Companion policies are created equal.

Lastly if it takes you several days to a"couple of weeks to get declines, than you need a better relationship with your E&S vendor.

 

[Allen Trent]

carriers' refusal

you call it refusal, I call it great leadership of a companies surplus to better manage their risk, especially for those public traded companies that have an obligation to stock holders

 

[Markthebroker]

you call it refusal, I call it great leadership of a companies surplus to better manage their risk, especially for those public traded companies that have an obligation to stock holders

At this point, if you have property in a high fire risk area in Ca, the chances of having a fire tear through at some point in the future is highly probable. It would be completely understandable if premiums eventually climbed to 5 figures for those properties.

I sure am glad I'm in a pc 2 area, and only dealing with business owners and investors who are generally very logical and can usually understand these realities quite quickly when explained to them.

 

[Jamie Miller]

Thanks for the replies. Please understand, I really do get why the companies don't want to write in wildfire areas. They're not nonprofits. I wouldn't write the properties either, if I owned the business. But I'm a mom-and-pop broker who can't do business right now.
It's just frustrating that a home nowhere near brush (in a suburb, PC2) gets declined due to being two miles from a fire that happened four years ago. I've been quoting FAIR/DIC left and right, but at the last minute the client finds a policy with USAA or State Farm. And, of course, I'd love to find a way to get quicker quotes, even if they're a decline.

 

[marindependent]

I've been quoting FAIR/DIC left and right, but at the last minute the client finds a policy with USAA or State Farm.

You are not alone.