Patrice Clements said the way fire risk assessment was performed in the past was through (1) Zip codes, (2) Fire station proximity and (3) Fire hydrant proximity.She said they still use that criteria but now the companies also use computer based services offering parcel level evaluations by APN number or residence address, e.g. ISO/Verisk Analytics, RedZone. This provides the insurance company with a numeric Fire score based on slope multiplied by fuel loads from your house, (200 feet, 400 feet, 1/4 mile etc), plus road access and sometimes fire history, aspect, etc.
Patrice Clements said Farmers Insurance uses a company called Fire Line and currently they can only write a score up to three when before they could go up to 12. The drought situation has caused this change in writing polices.
She said there are two kinds of policies available:
(1) Standard packaged policies
And
(2) FAIR policies - for fire Only. This is insurance offered though a pool of California insurers and is based around a special (high) risk pool of structures and is administered by a quasi-state organization.
They are extremely strict (200 feet or more clearance, brush, etc. and over the neighbors property line if within that boundary).
The policy is limited to wildland fire only, no liability, theft, water damage etc. The policy is hard to get and to keep and it is not unusual to see residents get cancelled after property inspections.
Patrice Clements said most of the polices she has been writing this year (2014) have been FAIR policies except for Catheys Valley.
She said premiums are increasing because of fire risk, they will never decrease and some policies in the last two years have doubled, tripled and even quadrupled.
The insurance company cannot insure a home for less than it cost to replace it even though they get asked by the customer to do that because the customer desires a lower premium. Homeowners may trade off deductible cost against the premium cost to lower the premium but they then assume more personal risk. But the coverage for the structure replacement cost does not change.
On Renewals and Cancellations Patrice said it depends on the company. That a company may decide to pull out of a geographic area. A company may cancel or non-renew based on a random periodic inspection. She said if you get a non-renewal talk to the company to see what you have to do to get the policy renewed.
Also the company may cancel based on claim history, non payment of premium or a change in status, e.g. ownership.
For more information: A series of seven articles concerning fire in Mariposa County.
Note: The above link begins with the 7th article. At the conclusion of the article are links to six other articles.
