Fire Insurance Hard To Come By For Nevada County Homeowners In California Drought
GRASS VALLEY (CBS13) — Homeowners in wildfire prone areas are having trouble finding insurance, as companies refuse to write policies for fear of increasing their liability in a large fire.
When Lisa Barker and her family moved to Grass Valley a few years ago, getting home insurance took work.
"It was important to cut off the limbs of the trees make sure we had enough space around our house for fire safety," she said.
But as her new neighbors finish to create defensible space, they're finding it difficult to get a company that will write them a policy.
Many large insurance companies have stopped taking on new policies in some counties including Nevada County and other foothill areas, because of the number of homes in high fire-risk areas.
"I think they're going to be concerned if there's a large fire, how will they pay everything out?" Barker said.
According to the California Office of Insurance, there are more than 100 companies writing insurance policies in the state.
CBS13 contacted several insurance companies, but they refused to comment.
State Farm told CBS13: "To keep our promises to all our homeowners customers in CA we must find the appropriate balance between our exposure, the resources available to maintain a quality level of service and our ability to provide coverage and pay claims."
So what's a homeowner to do if they're denied insurance coverage?
"You really have to shop around," said California Department of Insurance spokeswoman Nancy Kincaid. "Some people will only think of the Top 2 or 3 big companies, but you have to go a step further. With more than 100 companies writing in California, there really are choices."
The department of insurance's website has help for homeowners with more suggestions and a list of all policy writers.
