Investigating Risk Score George Braue Braue asked 3 months ago
Investigating Risk Score

Recently, at a Nevada County town hall, Amy Bach advised “finding out your risk score…and making sure it’s based on accurate information”.

Although California Fair Plan insureds are informed of their Level 1 and Level 2 wildfire risk scores (as determined solely by Fair Plan), and they are informed that they may appeal those scores to Fair Plan, no property specific information is provided by Fair Plan in support of those scores.

Without knowing the property specific info that these scores are presumedly based on, we cannot make sure that they are based on accurate info and cannot effectively appeal those scores.

For instance, if insurers are relying upon satellite imagery of the property, have they focused on the correct property; does their imagery accurately show property boundaries (so that I may not be penalized for my neighbor’s risky property management); does their imagery accurately reflect mitigation that we (and neighbors) have completed; is the imagery out of date?

How can we get the specific info that Fair Plan (and soon, every insurer) uses to calculate the risk scores that presumedly are the basis for our homeowners premiums?

I have already asked Fair Plan these questions with respect to my property, but have not received any response after two weeks.

Theoretically, I could file a complaint with the insurance commissioner over the failure to respond, but I’d rather get the info directly so that I may “appeal” the risk score, if appropriate. I assume that our insurance commissioner does not already require release of this info to Fair Plan policyholders, otherwise it would have been provided to us.

Thanks for your help.

2 Answers
United Policyholders Staff answered 19 hours ago
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Dear George,

You asked this question a long time ago and an expert answer never got published. Our deepest apologies. We have assigned your question to another one of our experts. While we wait for the expert answer, please utilize the resources and information available on our website: http://www.uphelp.org, specifically our April 2024 Tip of the Month about aerial imagery.

Best of luck!

Troy Willis Troy Willis Expert answered 19 hours ago
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It’s understandable that you want to ensure the accuracy of the risk scores and have the ability to challenge them effectively, especially when these scores may impact your premiums.

The issue you’re raising about not having access to property-specific information used to calculate the risk score is a valid concern. Unfortunately, as you’ve noted, the California Fair Plan typically only provides information on your Level 1 or Level 2 wildfire risk scores without offering the underlying data that supports these scores. This lack of transparency makes it difficult for policyholders to verify the accuracy of the risk factors or challenge them appropriately.

While the use of satellite imagery and other data sources like property boundaries, mitigation efforts, and updates to that data are all crucial factors in assessing wildfire risk, Fair Plan’s lack of clarity around these points leaves policyholders at a disadvantage. Since you have already reached out to Fair Plan without a response, here are a few steps you can consider:

  1. Continue Following Up with Fair Plan. It may be worth following up with Fair Plan, perhaps through a formal written request (such as an email or letter), explicitly asking for the specific data they use to determine your risk score. A written request may prompt a more formal response.
  2. File a Complaint with the Department of Insurance. While you prefer to resolve the issue directly with Fair Plan, if they continue to be unresponsive, filing a complaint with the California Department of Insurance (CDI) may be your next best option. The CDI can investigate your concerns and help facilitate a response from Fair Plan. Although it’s understandable that you’d prefer to avoid this step, it might push them to provide the needed transparency.
  3. You can request a review of your risk score. As part of your appeal, you can request that Fair Plan provide the specific data or reasoning behind your score, especially if they are using satellite imagery or other methods that may not fully reflect your property’s current conditions. If Fair Plan does not provide this information voluntarily, the Department of Insurance may require them to disclose it if you escalate the complaint.
  4. Look for Legislative Changes. You are correct that, at this time, insurers in California (including Fair Plan) are not required to release specific property data used in calculating wildfire risk scores. However, advocacy around this issue has been growing, and future regulations or legislation might require insurers to be more transparent about the data they use.

In the meantime, it might be helpful to document all of your communications with Fair Plan and gather any other supporting evidence (e.g., property mitigation records, boundary maps) that may help you challenge your risk score. If you do not get the necessary information, this could also strengthen your case with the Department of Insurance.

I hope this provides some clarity and a path forward, and I encourage you to continue pushing for more transparency regarding your risk score.