In Western states and other parts of the country that are prone to wildfires, homeowner's insurance is getting harder to come by and insurance companies are requiring policyholders to tend to the space around their homes to reduce the chances of the house going up in flames. If the policyholder doesn't comply, they risk having their coverage non-renewed or see their rates increase. Some insurance companies have started pulling out of certain areas that are prone to wildfire, or they are only writing coverage for homes whose owners have made a "defensible space" around their homes. These spaces are designed to keep combustible landscaping and structures away from the house, and they stretch for more than 100 feet. Shopping around for home insurance now requires planning and patience on the part of homeowners. Here's why:
Securing coverage Insurance companies now use satellite data to assess fire risk at a given location. They use tools that weigh factors such as topography, vegetation, wind patterns and accessibility. There's been an increase in insurance companies doing inspections before they will renew a policy or insure a new home. This is happening most often in neighborhoods known as "urban-wildland interface zones" and areas considered to be at risk for wildfires. The insurer will either send its own staff or contract with an outside inspector. After an inspection, the insurer will either decline to extend coverage, accept it with no additional stipulations or require that the homeowner make certain repairs or improvements if they want coverage. This depends on the insurance company. Typical improvements Here's what you can do to make your home more insurable in a wildfire-prone area: The structure Roof - Roofs made of wood or shingles are at high risk in a wildfire. Reroof with composite shingles, metal or tile if you can. Eaves and downspouts should be protected with fire-resistant or non-combustible materials. Windows - Replace single-pane glass windows with dual-pane glass, to reduce chances of breakage in a fire. Vents - Vents on homes create openings for flying embers. Cover all vent openings with inch metal mesh. Do not use fiberglass or plastic mesh, as it can melt and burn. Siding - Wooden boards, panels and shingles are combustible. Your home will be better protected by building materials such as stucco, fiber cement, wall siding, fire retardant, treated wood, or other approved materials. Defensible area One of the keys to the defensible space around your home is making sure that all plants are well watered and not dying and dry. Use the following three-ring approach to minimize fire risk: Very near home: In the first 5 feet surrounding any structure, avoid anything flammable - this includes plantings, but also mulch, woodpiles, and furniture, decorative items, and stored items. There should be no trees in this area. 6-30 feet from home: Use low ground cover such as mown grass, flowers, vegetables and mulch. Plants should be watered as needed and routinely maintained to remove dead/dry material. Remove all dead plants, grass and weeds. Remove dead or dry leaves and pine needles from your yard, as well as from roof and rain gutters. Trim trees to at least 10 feet away from the house. 31-100+ feet from home: Shrubs and trees should be well spaced and pruned to eliminate fuel ladders, where fire can climb from a ground fire to an ember-producing crown fire. Cut or mow annual grass down to a maximum height of 4 inches. Create vertical spacing between grass, shrubs and trees. Call us today if your home is in a designated brush area.
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If you have life insurance and are concerned if it will pay out in case you pass from COVID-19, you can rest assured your loved ones will receive a payout, but if you have not yet purchased coverage, it's not too late. The good news: Life insurance is still very much available and, according to trade publication reports, there was a noticeable increase in policy applications in March. You will have to move quickly though, as some experts think life insurance companies may impose stricter underwriting standards as they see higher losses in addition to losses in their investment portfolios, which they use to fund claims payouts. While life insurers are not excluding claims related to a pandemic, they may start including exclusionary riders on new policies as well as increasing premiums. And if the pandemic worsens, some insurers may opt to put a hold on writing new policies, particularly for older individuals, and resuming once a vaccine has been developed. As for pricing, insurers have not yet been raising rates in response to the coronavirus, but they may later, particularly for permanent - or whole life - policies. That said, pricing for term life policies is not expected to see any changes. New policies Many life insurers that are writing new policies now are asking applicants if they've been tested or treated for the virus. After the underwriting is complete, they are asking them again to sign a statement saying their health status has remained unchanged. If someone buys a life insurance policy today and finds out later they have COVID-19, and then dies from it, their beneficiaries will receive a payout as long as the policyholder didn't lie about their health status (like knowing they had COVID-19 when buying the policy). Also, people who contracted COVID-19, were hospitalized and later discharged after recovering may have difficulties in purchasing a life insurance policy now. That's because most insurers will ask on their applications if you have been hospitalized in the past year. Another new question that insurers are asking new life policy applicants is whether they have traveled overseas recently or been on a cruise. While the possibility that you did this recently are now quite slim, if you did, some insurers are asking that you wait 30 days since you returned before applying for coverage. Medical exams You will often be asked to undergo a medical exam when applying for life insurance. If the life coverage you're applying for requires a physical, chances are that it will still go on as planned, unless you're uncomfortable with it or are sick. Some people may be nervous about going in for an exam, particularly if they are under orders by authorities to stay home. With that in mind, many insurers are offering an extension of up to 90 days on the medical exam. In the meantime, they will offer immediate coverage to those applicants up to $1 million. One workaround for this is to first secure a no-exam life insurance policy, which does not require a physical to qualify for coverage. You can apply online and typically get approved the same or next day. This way, you can at least get some coverage in place if you have not been diagnosed with COVID-19. One thing about no-exam policies is that they will typically have lower limits than standard policies. They may also cost more than life insurance that requires a medical exam. Moustafa HaggagMoustafa "Mo" Haggag is a nationally cited insurance expert. |
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