The Importance of a Good Insurance Agent or Broker

As I sit at my computer writing this article for VBJ on a Sunday evening, I realize that I’m quietly celebrating my 38th anniversary since I began my career with Farmers Insurance. My journey began on July 20, 1987, in the mailroom of the former regional office in Carlsbad, California. Little did I know at that time that less than four years later I would open my own insurance agency.

I have seen several changes over the years in the industry, and I anticipate that I will see a few more before I retire and ride off into the sunset years from now. The 1994 Northridge Earthquake ultimately changed how home and earthquake policies were written and issued in the mid-90’s going forward. The devastation caused by wildfires has increasingly been getting worse in the golden state, so changes were undoubtedly expected, especially as costs have risen.

What most Californians don’t realize is that we’ve been receiving some of the lowest rates per $100 of home square footage in the nation. Proposition 103 has kept rates under control; however, major insurance companies have either left our beautiful state, instituted moratoriums on what they can write, or their underwriting rules have become very strict, especially in high fire-lines.

Rising premiums have left many California homeowners dismayed, as rates seem to climb ever higher with each renewal notice. Driven by a complex storm of factors—including increased wildfire risk, higher rebuilding costs, and insurers scaling back or exiting the market—many residents feel caught between the necessity of coverage and the strain on their wallets.

Yet, there are a few proactive strategies which can help keep rates in check. Bundling your home and auto policies with the same insurer often results in a substantial discount. Investing in fire-resistant upgrades, like ember-resistant vents and defensible landscaping, can safeguard your property and potentially help when determining eligibility. Add to your savings by maintaining a claim-free record, improving home security, increasing your deductible, and reviewing your coverage annually with a professional to ensure that you’re receiving the maximum of eligible discounts and that there are no gaps in your coverage.

While the insurance landscape remains challenging, a thoughtful approach can help Californians navigate these turbulent times and better manage the cost of protecting their homes. Lastly, please remember that your insurance advisors are customers too. We are having to navigate the underwriting rules and increased rates, as well, and we understand the frustrations which our customers are experiencing.

Call your agent and ask for an insurance review today, as you never know what their office can do for you. If you don’t have a local agent to reach out to, please feel free to contact our office. We would be happy to assist you with your insurance needs. We have a local office right here in Temecula, so call us today at (951) 699-1776.

*This article was originally posted in The Valley Business Journal