Supplemental homeowners insurance
Homeowners insurance is definitely a costly expense but a necessary one, nonetheless. Yes, you can shop around, find one that suits your budget and needs best and save some money in the process but don’t skimp on it. Saving a few bucks now will not be of any use when an unforeseen event occurs, and you will have difficulties recovering financially.
The wildfires that destroyed the West Coast last year are the perfect example of why you should not be thrifty when it comes to homeowners insurance. Sure, with standard insurance, you have coverage for some types of fire loss and damage to structures and property in areas where wildfires have an increased frequency, such as California. But this does not mean it’s that easy for homeowners to get fire insurance.
What to do
“As California wildfires grow larger and more intense, an increasing number of insurance companies are not renewing policies for customers who live in areas they deem too risky to cover,” according to the Los Angeles Times. “The state estimates that more than one million California homes are considered at high risk for wildfires.”
This means homeowners may be forced to resort to more expensive types of insurances to make sure their homes are protected. They may also opt for insurance collectives, such as the California FAIR Plan, a Los Angeles-based association that includes all insurers authorized to provide basic property insurance in the state. It’s usually more expensive than standard homeowners insurance which is why many see it as a last resort.
