Understand the Insurance Problem
Insurance companies have the authority to require changes to your property.
Insurance companies can require property changes that exceed local code requirements, as they have the authority to assess risk and set underwriting standards that may include stricter safety or maintenance criteria.
By way of a substantial increase in non-renewals (ex: 692.9% increase for homes in 94707), insurers are telling us we need to change our practices to reduce our risk by taking actions such as implementing Zone 0 and Home Hardening mitigations.
Properties within Berkeley’s Very High Fire Hazard Severity Zone are experiencing substantial notices of non-renewal, which forces homeowners into the FAIR plan, the insurer of last resort.
# of Non-Renewed Policies by Year
Download the entire spreadsheet showing year-over-year non-renewal increases for all CA zip codes here (Berkeley zip codes are highlighted).
Ensure You Are Ready For A Wildfire
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Call your agent or insurance company annually to discuss your policy limits and coverage. Make sure your policy reflects the correct square footage and features of your home.
Get an estimate for the cost of rebuilding after wildfire from a local contractor. In the Bay Area, most rebuilding estimates should start at $500 per square foot, depending on construction quality and home features.
Consider purchasing building code upgrade coverage.
Consider saving money with a higher deductible, not lower coverage.
Don’t underestimate to save money.
Don’t rely on the purchase price or appraised value of your home.
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Ask for a full replacement cost policy that replaces all your items at current market price. Ensure that valuables like jewelry, antiques, artwork, and collections are covered.
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If you make home improvements, be sure to call your agent to update your coverage.
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If your home is paid off, maintain homeowner insurance. Without insurance, will you have the money to rebuild your home?
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Consider adding at least two years of “additional living expenses” coverage, it can take a long time to rebuild after a fire.
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If your insurance company notifies you that they will not be renewing your policy, don’t panic. Start shopping for a new policy immediately. By law, they must give you 75-days’ notice, and it can take time to find a replacement policy.
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Use a smartphone to photograph and video your belongings. Document the contents of your home before a fire occurs. Keep your inventory & photos stored off-site or online in the “cloud.”
Video or photograph each room of your home.
Remember to document contents of drawers and closets.
Describe your home’s contents in your video.
Mention the price you paid, where, and when you bought the item.
Remember to note important or expensive items.
Video your electronics, appliances, sports equipment, TVs, computers, and tablets.
“Schedule” valuable items with your insurer before a fire strikes.
Save receipts for major purchases.
Store key documents and your home inventory off-site or in the cloud. Note that “fireproof” safes often do not survive the intense heat of a fire.
Don’t forget to inventory what’s inside your garage.
See www.uphelp.org for additional insurance information and tips.
How to Keep Insurance and/or Reduce Premiums
Work to achieve a Wildfire Prepared Home Base designation:
This certification, from the Institute for Business & Home Safety (IBHS) will qualify you for discounts and includes creating a 5-foot home buffer (Zone 0), preparing the home, and maintaining the deck and yard, typically achieved through retrofits to existing homes.
Work to make your home Safer from Wildfire:
The California Department of Insurance’s (CDI) standard is very similar to the IBHS Wildfire Prepared Home - Base designation (above). According to CDI, each item you complete on the Safer from Wildfire certification qualifies you for discounts with your insurer.
How to Navigate a Notice of Non-Renewal
Contact your current insurance company:
Your insurer must give you a minimum of 75 days’ notice before your policy expires. Get to work immediately.
Contact your current insurance company and ask them if there are improvements you can make to your home that will qualify you for renewal. If you bought your expiring policy through an agent, ask them to contact the company on your behalf.
Learn how to change your score:
You may be able to change your score; how? Work to achieve the IBHS Wildfire Prepared Home designation (see above) and use the links below to access services provided by Berkeley Fire that can help you understand how to meet defensible space requirements and home hardening standards.
Acquire and understand your risk score:
Ask your agent or insurance company for your fire risk score. A fire risk score used by insurance agencies assesses the likelihood of a property being damaged or destroyed by fire. This score is determined by evaluating various factors, including your property’s location, proximity to wildfire-prone areas, the surrounding vegetation, building materials, and local fire services. Insurance companies use this score to gauge a property’s potential risk and determine appropriate premiums for home and fire insurance policies. A lower fire risk score generally indicates a reduced likelihood of fire damage, potentially resulting in lower insurance rates. You have the right to know your score.
If the insurance company still won't work with you:
If your insurance company still won’t work with you, find an experienced agent or broker to help you shop around and compare plans. Just because one insurer isn’t renewing your policy doesn’t mean another isn’t willing. The help of a good broker will make the process much easier for you because they have the expertise and knowledge of the insurance market and have built relationships with multiple insurers. They can streamline the process by giving you personalized offers and advice.
Review the latest advice from united policyholders
United Policyholders’ guide for Californians facing home insurance non‑renewal outlines immediate steps including reaching out to your insurer about improvements, exploring independent agents, checking policy options like the FAIR Plan or non‑admitted carriers, and assessing insurer stability, to help you secure replacement coverage in today’s challenging market.
reputable RESOURCES
Shopping for Insurance?
Visit United Policyholders, whose mission is to be a trustworthy and useful information resource for consumers of all types of insurance.
WRAP Resource Center
Visit United Policyholders’ Wildfire Risk Reduction and Asset Protection (WRAP) resource center, which is designed to help California homeowners reduce wildfire risk through home-hardening guidance, links to mitigation standards, and connections to local programs and insurance discount opportunities.
Disclaimer: The goal of the Berkeley Fire Department is to provide resources to help you protect your property and neighborhood from the threat of wildfire. Berkeley Fire is not responsible for ensuring you qualify for an insurance policy, renewal, or for the management or enforcement of any insurance policies since these are private agreements between policyholders and providers.