Condemned to Fair Plan while the neighbors dance Rainy Days asked 1 year ago
Condemned to Fair Plan while the neighbors dance

I live in South Placer county in a 31 HO community in a moderate fire district by CalFire map standards (which seems accurate based on fires for many years).

Recently, Safeco decided to drop our fire coverage for reasons that do not match our property; one other Safeco customer in our HO community was dropped, too. Our agent claims no one will cover our address. When we contact insurance carriers about fire coverage, we are treated with horror, “not that address, NO!” Please note we’ve had Safeco coverage at this address for over 20 years and are excellent customers.

All other homes in our HO community are fully covered for fire by State Farm and other companies, including two new families who moved into our HO community in the last six months of 2022.

Is it fair that we are condemned to pay an exorbitant amount of money for fire coverage, while neighbors in every direction who are NOT Safeco customers, will NOT be cancelled or have their rates increased? Why do we have to subsidize them?

We’ve filed a complaint with the Dept of Insurance….We’re asking a new agent for help…but meantime…I can’t sleep over this..

Help Help!

1 Answers
Stacy Tucker Stacy Tucker Expert answered 1 year ago

I am so sorry you are going through this. It is a disturbingly common story now. Unfortunately, Safeco is within its rights to decline to continue to insure you, and other insurance companies are likewise able to decline to accept an application. Insurance is a contract, and both sides agree to enter into it. The insurer has to be willing to enter into the contract as well. If Safeco is dropping insureds in your neighborhood now, it is quite likely that the other insurers will follow over the next few years. This is why the Fair Plan option exists. Your situation is not fair, but it is legal and increasingly common.