Homeowners Must Prepare for Potential Threats

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  • Each year, people might face a number of threats to their homes that could come from natural disasters, such as flooding, earthquakes, tornadoes, hurricanes, and wildfire. This last type of problem is one that recently cropped up for a number of homeowners in California, where insurance agencies seem to be canceling policies of homes considered to be at elevated risk for this type of threat. This reality may highlight why many insurance agents may need to start doing a little bit more to make sure their clients fully understand the risks they might face based on where they live.

    A number of residents in El Dorado County, California, recently learned that, due to changing risk associated with wildfires, their old home insurance policies had been dropped, according to a report from CBS Sacramento. This is a somewhat common occurrence in such areas, but that fact does little to diminish the problems that might arise for affected homeowners, especially with the season during which they’re at greatest risk now just a few months away. Shopping for a new policy and waiting for it to go into effect might bring them perilously close to the time when they could be severely impacted.

    Don’t give up hope
    The good news for many homeowners who might be affected by such a move by their old insurers is that this doesn’t mean they’re out of options, the report said. In fact, the market in most states is so crowded that there’s very little chance they won’t be able to find affordable coverage once again.

    “It’s important to know that it’s a competitive market,” Nancy Kincaid, who works for the state’s insurance department, told the station. “There are lots of companies that are writing in California, that are writing in all of the areas, the message is to shop.”

    However, agents might still want to take all the necessary steps to ensure that their clients fully understand why their policies might get dropped, and what they can do to adequately prepare themselves to go shopping once again if such an occurrence does take place. The more people know about their plans, what they cover, and what they should be looking for based on their own properties’ risk factors, the more satisfied they’re likely to be with their agents overall. That, in turn, will typically translate into higher client retention rates for agents going forward.

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