Will high-risk areas of California get insurance coverage?
Hello friends, I hope you are happy! Sources of Live Insurance Info have given this update on the news published in the Sacramento Report, ill high-risk areas of California get insurance coverage which can be a great relief for the people of California. The State Insurance Department has accelerated its plan to increase its insurance policies for those risk areas related to forest fires in the past few weeks or falls in its risk area.
The new plan includes a statewide map highlighting areas most at risk for wildfire. Nineteen San Diego areas made the list, including many backcountry communities.
In this list, the state insurance department said, ‘We had visited all these areas in April when a big insurance company like State Farm announced not to renew more than 2 thousand policies in San Diego and 72 thousand policies across the state.’
High-risk areas of California get insurance coverage
Under this new plan, insurance companies will now commit to providing policies for the homes of people living in high-risk areas of California. It will allow more Californians to move from the high-priced FAIR Plan to conventional insurance. In turn, insurance companies will no longer rely on records of wildfires from years past and will be able to use “catastrophe modeling” to predict tomorrow’s losses when charging insurance rates.
Ricardo Lara, the state insurance commissioner, said, ‘This new system will give customers better options for themselves. It will also maintain cost stability. However, some consumer advocates have warned that catastrophe modeling is tempting but difficult to do on the ground. Also, he said that this model has increased the policy cost in Florida.
Catherine Blakespear, a state senator, also hosted a webinar on high-risk insurance in the past few weeks, in which she discussed the collapse of the insurance market and the reasons behind it. Apart from this, Catherine also told people what steps to take to keep their homes safe. Now, it will be known in the coming days what benefits this plan gives to the people of California and whether it has any effect on the increase in costs.
Also read: The L.A. Insurance Commissioner visits Cenla and talks about insurance reform!
