While reporting in Cambria just last week I met a man who told me he was recently dropped by his homeowner's insurance. It's something many people throughout the state have been experiencing.
“It’s definitely a concern in California with the fire risk,” said John Heidrick, Cambria resident.
Heidrick and his wife, Charlotte, have lived in Cambria since 2008 and received a cancellation notice for their home insurance nearly a year ago.
“We had to change our insurance because Cambria where we are residing is too much of a fire risk and we had to switch to a different company,” Heidrick said.
Chris Raders who owns Ted Hamm Insurance says the challenge with insurance companies is the capacity of homes they are willing to cover in one area in regards to insurance losses.
“We had a broker and that means we write two checks instead of one for our home insurance. One to one company and one to another company,” said Charlotte Rose, Cambria resident.
Raders recommends those who have received a nonrenewal notice to call around and see what other insurance companies are available with the last resort being the California FAIR Plan which he tells me is the most expensive option.
This issue isn't just a problem here in Cambria.
“They said they are not going to provide insurance for that area anymore because we’re fire-prone,” said Laura Wilson, Idyllwild resident.
Wilson says within the first year she moved to her home in Idyllwild, they had to evacuate.
“We had to leave because of a fire and seven houses burned down,” Wilson said.
Raders says with fewer insurance companies willing to insure, it also causes prices to go up.
“It’s been a threat in California because the insurance costs keep going up and all of it is because the risk the insurance companies take just trying to insure homes here,” Heidrick said.
