Re-Inspections For Home Owners Policies Why...?
Aaron Rosen • May 25, 2023
I had an alarming email from a client a couple of weeks ago. There was a home inspector (who did not look like a home inspector) at his home. The funny thing is, this client has had the same insurance company for the last few years.
Why would a home inspection take place after the policy has been in effect for a few years?
I will answer that question in due time...
The inspector startled my client’s family (because they were not expecting this at all) and the inspector did not do a good job of explaining why he was there. Within 15 minutes of receiving the email from my client, I called them. I left a voicemail and immediately called the home inspection company to verify the inspector’s credentials. I had the credentials, because my client did an amazing job of interrogating the inspector and took photos of his badge, which he included in his email to me. Once the company confirmed it was one of their inspectors, my client was on the other line returning my call.
My biggest concern, which was my client’s first concern, was their safety. There are a lot of weird people and scammers out there these days trying to gain access to anything they can. To have an inspection out of nowhere, seemed really odd. As I spoke with my client for the next 20 minutes, we discussed all of his concerns and, ultimately, why an inspection was taking place now after having their home insurance policy in force for the last 3 years. What I surmised was, since their policy started when covid was in full effect, the insurance companies may not have completed a home inspection when we started the policy. During covid, everything kind of went on pause, which would have been a face-to-face interaction. Home inspections were one of them.
A number of insurance companies are also in the process of re-inspecting some of their properties, as well. Typically, this is being performed by the home owner though. The home owner will be given a list of photos to submit to the insurance company for review. From there, the underwriters will look through the photos ensuring the home appears to be in good condition. If the property does not meet their requirements, they will either recommend improvements or set the policy to cancel at the next renewal. Insurance companies are still trying to find ways to reduce their risk and this is one of them.
What we learned from my client's worry and concern from his recent experience with a delayed inspection is, you, the home owner, have every right to question anyone that comes to your property. The diligence he took and the way he interrogated the inspector was great. His quick thinking and asking for the inspector’s ID was very smart. My hope is that, in case you have a random person show up at your front door, who says they are there to inspect your home that you do not allow them inside. Ask for their ID and question them. Exterior inspections are normal and you want to allow them to take photos of the outside once they verify who they are. If you decline the inspection, the insurance company can cancel your policy. In the words of a good friend of mine, “trust, but verify”.
We hope you and your family have a wonderful Memorial Day Weekend.
Elizabeth's Corner
My wife, Elizabeth, is a Mom, an amazing wife and an incredible chef. She trained at the California Culinary Academy in San Francisco. She shares a helpful tip below.
With spring/summer BBQ season upon us, you may need a side dish to bring or to provide as the host. Here is a great recipe for Mexican Street Corn Salad. This recipe is courtesy of WonkyWonderful.
Mexican Street Corn Salad
Ingredients:
- 4-5 Ears Fresh Corn - roasted, grilled or boiled
- 1 Tablespoon Lime Juice
- 2 Tablespoons Avocado or Olive Oil
- 1-2 Jalapeños - seeds/stems removed, finely chopped
- 1 Cup Cherry or Grape Tomatoes - halved
- Handful Cilantro - chopped
- 1 teaspoon Chili Powder
- 1/4 Cup Crumbled Queso Fresco + more for serving
- Salt
Directions:
- Grill or cook corn using preferred method. Cut corn kernels from cobs.
- In large bowl, stir together corn, lime juice, oil, jalapeños, tomatoes, cilantro and chili powder.
- Gently toss in queso fresco. Salt to taste.
- Serve with additional queso fresco and cilantro.
Enjoy!
Aaron Rosen
Arc 23 Insurance
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It has been a challenging last couple weeks with the fires around Southern California. We feel for everyone, who has been affected by these fires, and know this time is very difficult right now. If you have questions about coverage or need help in any way, please call us to discuss your concerns. You are our priority. Interestingly enough, there has been a big social media buzz about if you have a trust and your home insurance does not list the trust and that your insurance company will not pay your claim. This is not necessarily true. Every insurance company handles things differently. There is not a blanket right or wrong answer. However, if you do hold your home in a trust, typically, you can add your trust as an additional insured or additional interest (depending on what your insurance company will allow). Most insurance policies are written for individuals and not for an entity, which is why it will vary. From what we have learned in the last few days, insurance companies want to pay claims...to the right people. When you cannot prove you are the owner of the trust (because your paperwork was destroyed in the fire), the process slows down, as the insurance companies want to make sure they are not writing checks to the wrong people. There are people looking to commit fraud and the insurance companies are trying to help their clients avoid it. That is why it may take longer. In regards to coverage for your home, if you are worried you may not have enough coverage, in the event your home is lost due to a fire (or other peril), please call or email to discuss it. Every home is different and unique and we want to be sure you are confident that you have the correct level of coverage to help you sleep better at night. As we emerge from the fires and 2025 continues, we know there is a long road to rebuilding for the people who lost everything. There will be scammers out there trying to take advantage of you, so they can profit. Be mindful and thoughtful about who is trying to "help" you. And if you are not sure, talk to your claims adjuster or agent for some advice. We are in this with you.
It is that time of year, when we begin to reflect on what we have accomplished. We also think about what we are thankful or grateful for. By now, it feels like the year has flown by...and it has. 2025 is right around the corner and time is not slowing down. Have you made any plans for 2025 yet? I would be remiss if I did not take a moment to say what I am grateful for. I could not do, what I do, without my wife. She inspires me and keeps me in check. She is an amazing human being and I am lucky to have her in my life. I am thankful for my son, who challenges me every day, to become a better person and father. I am thankful for my team at work: Becky, Marelle and Alijah. We recently hired Alijah a couple weeks ago. He comes to us from a strong customer service background and is learning all things insurance right now, hard at work and studying for his insurance exam. I am also thankful for my family and friends for always being there and believing in me. And I am thankful for you, for your trust in me to help you navigate this crazy insurance market. My team and I hope you have a wonderful Thanksgiving Holiday and create some memories that will last you a lifetime. From our family to yours, we wish you a very Happy Thanksgiving.
With the cooler weather and shorter days on their way, it may be time to do a few household chores....that you may not have done in a long time. A couple months ago, we had a client's garage burn down. The property is a rental property for them and nobody was hurt when it happened, thank goodness. It was not an electrical fire, though, maybe that would have made sense. The tenants have their washer and dryer in the garage. The cause of the fire was a build up of lint in the dryer vent due to never having been cleaned out before. Dryer lint is the perfect dust ball that can catch fire, quite easily. It is also listed as the #1 cause of house fires, on a regular basis, here in the US. I believe most people do clean out the lint tray from their dryer after each use. But, how often do you check the flexible tube (dryer vent) that goes from the back of the dryer to the wall/outside? A couple weeks ago, a different client called to inform us that they had water dripping onto their car that was parked in the garage. When they looked up, there was a large puddle that had formed in the ceiling above and was just starting to leak. After poking a hole in it and releasing the water, they called a plumber to try to figure out what was causing the leak. The plumber cut into the drywall above, to find the plywood was almost completely rotted away, right under a toilet. My instincts said "wax ring." A wax ring is what connects your toilet to the floor, sealing in what is flushed from your toilet bowl down into the sewer. The wax ring only lasts a certain number of years. When I asked my client when they last changed the wax ring, they replied by saying, "what is the wax ring?" This past weekend, at my own home, I decided it was time to change the smoke and CO2 detectors. The smoke detectors, we installed about 8 years ago, had about an 8-year battery life. I wrote the date that I installed them on, on each detector many years ago, but failed to write down the change-by date. I decided, since we had already dismantled two of them over the last year or so, it was time to replace them all. You may be wondering how frequently you should vacuum out the dryer vent (the one that connects in the back of the dryer, through the wall, to the outside of your home)? It is recommended to do this once per year. How frequently should you change the wax rings under your toilets? According to online resources, the wax ring should last 20 years or more. However, sometimes wax rings can dry out and fail, which is what happened to our client. Other signs you should change the wax ring are: if the toilet rocks or wobbles if you see water pooling around the toilet if you see any mold growth around the toilet if the toilet smells like sewage if the floor is moist, damp or spongy For any of these reasons, please call a licensed plumber to help you. I have made the decision to change my wax rings every 10 years, at most, to help avoid a potential problem. How frequently should you change the smoke and CO2 detectors in your home? Typically, the battery life on new models is up to 10 years. The current models installed in your home may have a shorter life span. When installing new ones, make a note of the install date on the detectors and the change-by date for what is recommended by the manufacturer. This will help you remember when you actually need to change them, instead of trying to remember. Please note, all smoke detectors are different and please refer to the manufacturer for maintenance and when to replace them. All of these items can seem a bit overwhelming, if you try to tackle them at once. Please find time to do them over a weekend or two, if you have not updated them in a long time. Be sure to make a note on your calendar, too, if it helps you remember, when you need to change them again in the future. It could save you a headache or a claim by doing some preventative maintenance.
Have you seen this headline, recently? It made its way around the news and social media in the last week or two. It is a headline grabber and is designed to make you look. The one above is from the Orange County Register on August 14, 2024. Think of it as the newspaper trying to sell more newspapers, or the social media companies looking for more clicks to find a way to capitalize off a headline. Either way, there is some truth, but, of course, the headline is not the whole truth. Are insurance rates up? Yes Are car insurance rates up 54% this year? No The real question is why are insurance rates up? If we look back to Covid, the Department of Insurance mandated that car insurance companies refund premiums, because people were no longer driving as much as they used to. And car insurance rates were then frozen for about 3 years. The thing is, people started driving again after a few months during Covid. Insurance claims were back to normal very quickly, except the rates could not keep up with what happened next: Inflation! Inflation spiked and everything became more expensive. Except, insurance rates stayed the same. In March 2023, Progressive was the first auto insurance company to request and receive a double-digit rate increase. They also received a second double-digit rate increase this year. I had the privilege of attending one of their road shows a few weeks back, where they informed us that they are rate adequate. What that means is, they do not believe they will need to increase their auto rates for the next two years, bringing some stability back to their insureds. Because insurance companies were not allowed to increase their rates during or right after Covid, we did not experience a slower increase in our insurance rates, like we normally have in the past. If we had a 10% increase each year for the last 3 years, it would be the equivalent of a 33.1% increase. But, because we did not have any real increases, this created the perfect storm. Some are now saying and seeing a 54% increase in auto insurance, which would have happened anyway over the last 3-4 years had the Department of Insurance allowed it. Fast forward to today, there are still many insurance companies who have filed for rate changes and have not yet received them. The Department of Insurance has promised to have their new regulations in place by December 2024. This promise was made back in September 2023 (link here) . Once the new regulations are in place, the insurance companies will file their rate changes, which will hopefully, only take 60 days for review and approval. As soon as the rates are approved, they will be put into place for us consumers to start paying. After a year or so of the new premiums being paid by us, I believe the insurance market will begin to stabilize. I am excited for 2027, with the idea of more insurance companies returning to the marketplace and having more options for our clients.
With all the headlines about increasing insurance rates, it should be no surprise that I am included in this pool of people. Lo and behold, I received my homeowner’s insurance renewal, just the other day. Let me start with my coverage. It is staying exactly the same as last year, according to my home insurance company. So, you would think my rate should not increase that much, right? WRONG!!! My home insurance policy is increasing by 50% this year. Yes, 50%!!! I kind of expected 40%, but 50%??? I also realize that some of our clients’ rates have increased by 100% or more, so I really cannot complain. The other item I am recognizing with this situation I am in, and that all of you are in, is that there is no better option for me either. I am kind of stuck. I'm stuck with my insurance company, because I know if I shopped around, I would only find another company who would want me to pay even more than my 50% increase at renewal. Unfortunately, it is the market we are in. We are receiving bigger bills and we all feel stuck. I was emailing with a potential new client, just yesterday, about her auto insurance. The renewal is going to be about $10,000 for the year for the entire family's car insurance policy. We worked on an alternative quote and it was about the same; $10,000 per year. She asked if there was anything she could do to change her situation. The fact is, no one in her family did anything wrong. They have no claims. Their rate just increased. I wish we had a better answer and solution. For now, I am going to pay my insurance renewal. I hope that the insurance market begins to stabilize, so the increases can slow down and hurt less moving forward.
A lot of insurance companies are still trying to find ways to not renew your home insurance policy, in an effort to reduce their risk and potential exposure from future claims. They may ask you for the age of your hot water heater, photos of the electrical panel, or even the age of your roof. Or maybe they are using satellite images to look at your roof for moss, as a reason to not renew your insurance. I think the hardest part about this is it feels like a personal attack, but it is not. After all, you may have been with your insurance company for 20 years or maybe just 2. And all of a sudden they are "betraying" you, at least that is how it feels. However, it is strictly a business decision coming from senior management. Cost control measures are being put in place to reduce potential claims, to be able to remain in the insurance market. We have had several clients opt to not respond to the insurance company’s request for information. As an agency, we want what is best for you, which is to maintain your current policy. The couple of new quotes we have worked on for those clients, who have been non-renewed due to the hot water heater being too old or "moss" on the roof, have been three to four times more expensive than the expiring policy. Yes, 3-4x! If you receive one of these notices, please do not ignore them. Work on providing the information the insurance company is requesting. Of course, if they are requiring a new hot water heater, because your current hot water heater is more than 12 years old, maybe it's worth spending the extra $1500 to avoid paying a lot more for a replacement policy.
About two weeks ago, I was able to achieve a goal I set out earlier this year. I wanted to ski race...once again. It has been over 15 years since I last raced. Yes, 15 years. Sure, I get to ski with my family and friends, but not racing. Earlier this year, my wife, Elizabeth, set up a calendar for the year asking us, as a family, what did we want to achieve this year? She wanted to be sure we put vacations down on paper, because work will always fill in around it. I agreed, of course. She also looked at me and said, what do you want to achieve? I really had to take a moment to think about it. It was ski racing. I have a love for it and never get to do it any more. In early March, I tried to sign up for a race at Snow Summit. Unfortunately, I did not have the right credentials to qualify for the race. At that point, I did not think I would be able to race this year and would try to accomplish it next year. As it turns out, I was able to ski for a few days at Deer Valley. Deer Valley has a Nastar race course set up on a daily basis. The first day I skied, the course was closed for a private event. The next day though...it was open. I quickly signed the release forms and hopped into the start gate. I placed my poles on the other side of the timing wand (once you touch it, the clock starts). I waited for the countdown and I was off. My first run I qualified for a gold medal (compared to the times of the day for my age category). My second run, I improved my time by about 1/3 of a second and qualified for platinum. I was feeling really GOOOOOD! And then I was exhausted. My adrenaline was pumping for the races and once they were over, I was coming down. The next day, I wanted to race one more time. There were a couple of random people that pulled up to the race area, when I was chatting with the race department gentleman working the course. The first person was off before I could ask if he wanted to race. I was told that he races the most out of anyone at Deer Valley. The second person who pulled up races the second most and I was able to race against him. The countdown was on to start and away we went. Having someone right next to me, made me want to push myself harder. I hit more gates (the flags you turn past in the race course) than I did the day before. I felt him trying to catch me and he did not. I was able to beat my competition by a 1/2 second. In the photo above, I am on the left, in the blue pants and gray jacket. After 15 years, I was able to achieve a goal I did not even know I had until my wife helped me identify it. I am so thankful to Elizabeth, for helping me rekindle a passion of mine and help me achieve my goals.
About two weeks ago, I was able to achieve a goal I set out earlier this year. I wanted to ski race...once again. It has been over 15 years since I last raced. Yes, 15 years. Sure, I get to ski with my family and friends, but not racing. Earlier this year, my wife, Elizabeth, set up a calendar for the year asking us, as a family, what did we want to achieve this year? She wanted to be sure we put vacations down on paper, because work will always fill in around it. I agreed, of course. She also looked at me and said, what do you want to achieve? I really had to take a moment to think about it. It was ski racing. I have a love for it and never get to do it any more. In early March, I tried to sign up for a race at Snow Summit. Unfortunately, I did not have the right credentials to qualify for the race. At that point, I did not think I would be able to race this year and would try to accomplish it next year. As it turns out, I was able to ski for a few days at Deer Valley. Deer Valley has a Nastar race course set up on a daily basis. The first day I skied, the course was closed for a private event. The next day though...it was open. I quickly signed the release forms and hopped into the start gate. I placed my poles on the other side of the timing wand (once you touch it, the clock starts). I waited for the countdown and I was off. My first run I qualified for a gold medal (compared to the times of the day for my age category). My second run, I improved my time by about 1/3 of a second and qualified for platinum. I was feeling really GOOOOOD! And then I was exhausted. My adrenaline was pumping for the races and once they were over, I was coming down. The next day, I wanted to race one more time. There were a couple of random people that pulled up to the race area, when I was chatting with the race department gentleman working the course. The first person was off before I could ask if he wanted to race. I was told that he races the most out of anyone at Deer Valley. The second person who pulled up races the second most and I was able to race against him. The countdown was on to start and away we went. Having someone right next to me, made me want to push myself harder. I hit more gates (the flags you turn past in the race course) than I did the day before. I felt him trying to catch me and he did not. I was able to beat my competition by a 1/2 second. In the photo above, I am on the left, in the blue pants and gray jacket. After 15 years, I was able to achieve a goal I did not even know I had until my wife helped me identify it. I am so thankful to Elizabeth, for helping me rekindle a passion of mine and help me achieve my goals.
I was sitting at the Orange County Realtors annual meeting this week and speaking with a Realtor I know. She was worried about her mom's home insurance getting cancelled and one of her friend's auto insurance just cancelled too (for no good reason). After chatting a little bit more, I tried to reassure her that her Mom's home insurance policy, if it were to be cancelled, the insurance company has to provide plenty of notice. The technical answer for "plenty," according to the department of insurance, is a minimum of 75 days. If an insurance company wants to cancel your home insurance for any reason at renewal, they are required to provide a minimum of 75-day notice. While it is no consolation if you do get cancelled, at least you have 2 months to try to find a replacement policy. If your auto policy gets cancelled at renewal, it is typically due to non-payment (as there are many consumer protection laws that require your auto insurance to be renewed even if you have a shaky driving history). When you do not pay for your renewal before the expiration date, the insurance companies do not provide additional notice. It is just cancelled. Some insurance companies may provide a small grace period after your renewal date to make a payment. However, there is not a lot of grace these days. If you miss paying by just one day or if your credit card was stolen and you forgot to update your automatic payment details, your policy will cancel and there is not a lot you can do to get it reinstated. Our advice is to double check everything, making sure all your insurance is paid promptly, to help you avoid any headaches. It is challenging and it seems like it is getting harder. There is a light at the end of the tunnel though. It just may be a couple years away. We will get there...
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