My primary home is in California. My insurer has elected not to renew my policy because my primary home is in a high risk fire area. No other admitted carrier wants to insure my home. My insurer however has agreed to write a policy with a DIC endorsement that excludes fire and I have determined that I can get fire coverage from the California Fair Plan. Separately I have found a non-admitted carrier that will write a whole policy for all coverages. Which is better from a California homeowner’s perspective: a whole policy from a non-admitted carrier or a hybrid policy from my insurer supplemented by the California Fair Plan for fire? Please help. Thank you.
This is a great question. While an entire conversation could be had going over the pros and cons of the California FAIR Plan Association versus a single non-admitted insurer, let me give you perhaps a rule of thumb. If you are comparing the FAIR Plan and a DIC policy from a reputable admitted insurance company, it may typically be the better choice than one policy with a non-admitted insurer. While this isn’t set in stone it may be something to guide you. Remember, an insurer that is non-admitted isn’t innately a bad insurance company, it may have all the financial solvency one could ever want, they simply do not offer the same protections to consumers in California when purchasing a policy from them.