Fair Plan Insurance: What Other Options Do California Homeowners Have?

The California Fair Plan provides fire insurance coverage for high risk properties that traditional insurance carriers will not insure. California has been devastated with wildfires these past five years, causing a majority of insurance companies to pull back from insuring high wildfire risk properties. Many Californians have had to turn to the Fair Plan as the only option for homeowners insurance.

What is the Fair Plan?

The California Fair Plan was created in 1968 after the brush fires and riots of the 1960s. The Fair Plan is not a state agency and is not funded by any taxpayer money. The Fair plan is an insurance pool made up of all the insurers who are admitted to write property insurance in California. This is important for policy holders because if the Fair Plans capital is not sufficient to cover losses and expenses, the Fair Plan is permitted to asses these member companies for any shortfall.

Since the Fair Plan has the ability to assess member companies as needed to pay claims, they are stronger than any single insurer. This is because they are backed by the capital and surplus of all insurance companies writing property insurance in California.

 

Do Customers Have Any Other Options?

Outside of the Fair Plan customers in high wildfire risk areas have been left with very few options. Luckily, at Don Williams and Associates, we have teamed up with multiple insurance companies that can potentially offer solutions for these customers.

  1. American Modern Wildfire Program- American Modern Insurance Group is an A+ AM best rated insurance company. They are owned and backed by Munich Re, the largest reinsurance company in the world, giving you a peace of mind in the event of a loss.

They have a team of wildfire inspectors that will provide a wildfire consultation on every home they insure with the objective of protecting and strengthening the home against wildfire.

With American Modern all homes are underwritten on their individual risk characteristics, including but not limited to: existing vegetation management within 30ft of the home, ability to conduct additional vegetation management within 30ft of the home, and construction characteristic of the home.

They will provide coverage for primary and secondary residences, but currently do not cover rental properties. They also provide a multi policy discount just for having an active auto insurance policy in place.

Here are some of the types of risks that are ineligible for this program:

  • wood shake roof
  • dogs with a bite history
  • marijuana grows
  • mobile/manufactured homes
  • vacant homes
  • vacation rentals
  • course of construction

      2. Delos Insurance- Delos Insurance Solutions was founded in San Francisco in 2015 and is a technology-powered insurance company. They are a managing general agent(MGA), focused on offering homeowners insurance in California. As an MGA, Delos offers policies on behalf of their partner, Canopius US Insurance, Inc (an A- rated carrier). 

Delos is focused on building the best risk model in the world for understanding wildfire risks. Using satellite imagery, data, and AI they can offer coverage in a market with very limited options. The founders of Delos worked in the space industry and were able to see up close what sorts of useful data satellites can provide.

Delos homeowners insurance program will provide properties with a total insurance value(TIV) of up to $5M. They have a mandatory $10,000 fire and smoke deductible and offer up to $1M in personal liability coverage. A benefit to their customers is that they also provide  private firefighting protection during a a fire for customers who opt into the program.

At Don Williams and Associates we have access to both of these great insurance providers and would be happy to put a together a free comprehensive homeowners insurance proposal together for anyone interested.

Give us a call today at 408-402-3646 or fill out this form and one of our insurance experts will be able to assist you!