Avoiding Insurance Premium Shock: Protect Your Condo Community from Wildfire Risk with Wetline Wildfire Defense
As wildfire season approaches, it's important for homeowners to take steps to protect their properties. Unfortunately, some condominium communities in California are finding that their insurance premiums are skyrocketing due to their risk of wildfire exposure. This is leaving many homeowners' associations (HOAs) unable to find affordable replacement coverage on the state-sanctioned marketplace and forcing them to turn to the secondary market, where premiums are much higher.
One such community is Canyon Park Villas in Mira Mesa. When Farmers Insurance declined to renew their property insurance, the HOA was unable to find a replacement policy from traditional insurers due to wildfire concerns. As a result, the community's annual insurance bill went from $47,000 for $50 million in coverage under Farmers to $600,000 for $10 million in coverage from Lloyds of London and Axis – a 13-fold increase. To pay for this hike, the HOA enacted a $2,500 emergency special assessment on condo owners.
This problem is not unique to Canyon Park Villas. Insurance brokers and HOA legal experts are seeing a growing number of condo HOAs across the state facing similar premium shocks due to wildfire exposure. And it's not just communities in outlying areas with brushfire concerns that are affected – common-interest communities of all sizes and varieties are struggling to find affordable replacement coverage.
The high premiums and lack of affordable coverage can have serious consequences for these communities. In addition to the financial burden on individual homeowners, the increase in insurance costs can also make it more difficult to sell condos in affected communities. Banks may require "force-placed" insurance – which is usually expensive for the borrower – to protect their collateral before making a mortgage loan to a potential buyer.
It's clear that something needs to be done to address this issue. At Wetline Wildfire Defense, we believe that the best way to protect your home and community from wildfire risks is to implement multiple layers of defense. Our exterior sprinkler systems are designed by a former Cal Fire Division Fire Chief and feature a 4-way redundant start option, including a heat sensor and remote phone app. We also incorporate Cold Fire® fire-suppressant into our systems and apply a patented Class A Clear Coat Fire Retardant to surfaces. And we offer additional layers of defense such as ember-resistant window laminates, gutter guards, and vents. By taking a comprehensive approach to wildfire prevention, we can help homeowners and HOA's reduce their risk and keep their insurance premiums from skyrocketing.
That's why we offer customized solutions to help reduce wildfire risks and give homeowners peace of mind. By working together, we can make a difference in the fight against California's devastating wildfires.