California has always been a place where fires were common. However, this year, AAA has decided they will not renew certain homeowners’ coverage in California. The distinction is that these homes are stuck in fire-prone areas. With the lengthier, severe fire season ravaging the San Diego area, many residents are outraged.
These changes aren’t in effect for people who are coming to the area or are new customers. That would make much more sense and be much more reasonable, most feel. Instead, this change was enacted suddenly and applies to everyone, immediately. People who have lived in the area for decades and had the same homeowners’ insurance are now seeing these changes.
The statement from AAA is, in part, as follows: ” Although the risk of fire has increased over the years in many California communities, we have continued to offer home insurance in the state. Over the past few years, we saw a need to re-evaluate our exposure to future catastrophic fire events. Based on that evaluation, we must take steps to remove homes that present the highest exposure to wildfire.”
While this is not a consolation and it doesn’t help those that are affected, at least they gave a reason.
The company claims the changes will affect less than one-percent of their insurers. However, with the changes taking effect in the middle of the fire season, it is bad timing for customers. After all, there was no warning or advanced directive. The policy changes simply happened, when customers needed their homeowners’ insurance the most.
California FAIR Plan
There is a last-resort plan. This is the California FAIR Plan, which offers the minimum protection. This plan does not include liability, which is what most people need. However, it’s better than nothing and it’s available to everyone.
This form of insurance has been on the rise since the changes in the traditional homeowners’ coverage in California changed.
In summation, it might be time for AAA to remember why they exist. Even though the changes might not affect a lot of their customers, it is a brutal change. The impact will be felt throughout the fire-prone areas. The people who are affected are now in a state of even more panic. Many people feel that this is no way for a company to treat loyal customers. Yet, unfortunately, the company isn’t completely unjustified.
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