For many California homeowners, something that once sounded unbelievable is becoming a reality:
Your homeowners insurance premium may now cost as much as—or even more than—your annual property taxes.
If your home insurance renewal just arrived at $5,000, $8,000, $10,000, or even $15,000+ per year, don’t automatically assume that’s simply what you have to pay.
StarWest Insurance Services can help you shop the market and explore your options.
Why Has California Home Insurance Become So Expensive?
California’s homeowners insurance market has changed dramatically.
Wildfire exposure, rebuilding costs, reinsurance expenses, inflation and catastrophe risk have all contributed to pressure on insurance pricing and availability. At the same time, some insurers have reduced their exposure in California or tightened their underwriting requirements.
The result?
Homeowners who once paid relatively modest premiums can suddenly receive a renewal that is thousands of dollars higher.
In some areas, the insurance bill can now rival the property-tax bill.
“I’m Paying More for Insurance Than Property Taxes!”
We hear versions of this from homeowners all the time.
Consider a homeowner who pays:
Property Taxes: $7,500 per year
Home Insurance: $9,000 per year
That’s $16,500 every year before making a single mortgage payment.
And if the property requires the California FAIR Plan plus a supplemental policy, the combined insurance cost can become even more significant.
For homeowners who have owned their properties for many years and benefit from California’s Proposition 13 property-tax protections, the comparison can be even more dramatic.
Your property taxes may have remained relatively controlled while your insurance premiums increased sharply.
Before You Accept That Renewal, Let Us Shop It
One of the biggest mistakes homeowners make is assuming that because their current insurer wants $8,000 or $10,000, every insurance company will charge approximately the same amount.
That’s not necessarily true.
Insurance companies don’t all evaluate properties the same way.
One company may be concerned about:
- Wildfire exposure
- Roof age
- Claims history
- Distance from a fire station
- Vegetation
- Brush exposure
- Replacement cost
- Electrical systems
- Plumbing
- Property age
- Aerial inspection results
Another company may evaluate that same property differently.
That’s where an independent insurance agency can help.
StarWest Can Shop Multiple Insurance Markets
Instead of being limited to one insurance company, StarWest Insurance Services can evaluate available options from multiple insurance markets.
Depending on the property and underwriting eligibility, we can explore:
Standard admitted insurance companies
These are generally our first choice when appropriate coverage is available at a competitive price.
Specialty and non-admitted insurance markets
For properties that don’t fit standard underwriting guidelines, specialty carriers may provide another solution.
California FAIR Plan + DIC coverage
For difficult-to-insure properties, the California FAIR Plan may be part of the solution. Because FAIR Plan coverage is limited, homeowners commonly need supplemental coverage—often called a Difference in Conditions or companion policy—to provide important protections not included in the FAIR Plan policy.
Our job is to help you understand the differences and find an appropriate solution for your situation.
Already on the California FAIR Plan?
Don’t assume you have to stay there forever.
Insurance availability changes.
A property that couldn’t qualify for a traditional policy last year may have additional options today.
If you’re currently paying for both a FAIR Plan policy and a companion/DIC policy, it’s worth periodically checking the market.
You may be surprised by what’s available.
Your Mortgage Company Doesn’t Care How Expensive It Gets
If you have a mortgage, your lender will generally require you to maintain adequate property insurance.
That means simply going uninsured usually isn’t an option.
And if your insurance is paid through escrow, a large premium increase can cause another unpleasant surprise:
Your monthly mortgage payment can jump.
Imagine your homeowners premium increasing from $3,000 to $9,000 per year.
That’s an additional $6,000 annually, or the equivalent of approximately $500 per month, that may ultimately need to be accounted for through your escrow payments.
That’s why homeowners should address large insurance increases as early as possible.
Don’t Reduce Your Coverage Just to Get a Lower Price
A cheaper policy isn’t necessarily a better policy.
We frequently see homeowners focus entirely on premium while overlooking major differences in:
- Dwelling replacement cost
- Extended replacement cost
- Water damage coverage
- Personal liability
- Loss of use
- Personal property
- Deductibles
- Roof settlement provisions
- Water backup
- Loss assessment
- Ordinance or law coverage
- Wildfire-related coverage
Saving $1,500 isn’t a bargain if you unknowingly give up $200,000 of protection.
Price matters—but coverage matters too.
At StarWest, our goal is to help you evaluate both.
What Should You Send Us?
Getting started is easy.
Send us:
- Your current homeowners insurance declaration page
- Your renewal offer showing the new premium
- The property address
- Any nonrenewal, inspection or underwriting notices you’ve received
We’ll review the information and determine what other markets may be available.
What If Other Agents Already Told Me “Nobody Will Insure It”?
Give us a chance to look.
StarWest has been helping California homeowners with difficult insurance situations for decades.
We regularly work with homeowners dealing with:
High premiums.
Wildfire areas.
Brush exposure.
Nonrenewals.
Older homes.
Roof issues.
FAIR Plan policies.
Difficult underwriting situations.
We can’t promise that another company will always be available or that we’ll always find a lower price.
But when you’re spending thousands—or tens of thousands—of dollars per year on insurance, it’s worth finding out.
Home Insurance Costs More Than Your Property Taxes?
We Can Help.
Before you accept another huge renewal increase, let StarWest Insurance Services shop your homeowners insurance.
Send us your current policy and renewal offer.
We’ll review your coverage, explore available insurance markets and see whether there’s a better solution.
StarWest Insurance Services, LLC
Insurance Made Easy
Auto • Home • Business • Life
Serving California since 1995
714-893-7271
starwestinsurance.com
CA Insurance License #0B83846