AAA won't renew our homeowners insurance

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My wife and I have had AAA insurance for almost 40 years. We've insured everything with them; our homes, our cars, umbrella policies, etc. Not once have I made a single claim with them except for the 1989 Loma Prieta earthquake claim on our Los Gatos home - 30 years ago. They had to do some drywall and stucco repair, nothing major.

About a month ago I got a call from AAA telling me that they wanted to inspect our primary residence prior to renewing the home owners insurance (we insure a second home with them as well). With all the fires in Cali I wasn't surprised.

Well, I just got a call from them telling me that they are not going to renew our home owners policy because they say it's a fire risk. I find this laughable because we live in the suburbs on a large parcel of 1 acre plus lots of California ranch style homes in California's Central Coast Wine Country. We are not tucked away up in the mountains, accessible only by a twisty, single lane road. We are just 1 mile as the crow flies from the local hospital and associated medical offices, dozens of them. There is a fire hydrant directly across the street from our house (!), and many others at regular locations throughout our tract of California "ranchers". The streets are wide enough for two vehicles to easily pass by each other. Most of the surrounding areas are vineyards, not tall trees or dense underbrush. The winds here are always mild and we don't have mountainous ravines that accelerate them. At night we regularly cool down with a "marine layer" - we are only 11 miles from the ocean.

Regardless, they consider our home high risk (it's immaculate inside and out).

What does this mean for AAA? They will lose all my business, and I will not wait for renewal time. AAA will be sending me refund checks because I always pay my policies in full when payments are due.

What does this mean for you? Whether you live in parts of California, areas on the Eastern Seaboard, Florida, the Mississippi River Valley, a tree lined street of 100 year old Victorians, etc., kiss it off - your home owners insurance may not be renewed. Is this another part of the "new normal"?

Funny thing is, when I told the agent that there is a fire hydrant directly across the street from us, his reply was "We don't take that into consideration". That's an exact quote. What a joke.

Pictures of our uninsurable home are attached.

Scott

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I'll bet EVERY home insurance company is going to be looking for ANY WAY POSSIBLE to get rid of California homes after that last big fire.
 
Insurance companies all suck and what you are describing is common.

My folks had to get rid of their woodburner after 20 years to stay insured

When I changed to collector plates on one of my old cars the insurance got cancelled a few weeks later.

Back in the day my mother's health insurance was canceled because a doctor found a small carcinoma on her skin that he didn't bother telling her about but did tell insurance about.

I've often believed that insurance companies are unnecessary and should be replaced by something else, they extract more than the give back by nature and waste a lot of money in the process
 
Originally Posted by Linctex
I'll bet EVERY home insurance company is going to be looking for ANY WAY POSSIBLE to get rid of California homes after that last big fire.

That, and East Coast "noreasters", Florida and Gulf Coast hurricanes, Mississippi River floods, etc. It's coming your way too.

Scott
 
What a beautiful home you have. Love your wisteria!

They should give you a detailed list of what (in their opinion) needs changing on the property in order to qualify for renewal. Otherwise, I guess they'll only insure homes surrounded by a mile-wide moat of flat gravel from now on.
 
Make sure you don't have a dog that is on their list. Premiums may well double if they insure you at all. That is a beautiful home. California continues to be the most beautiful state in the union even though much jealousy will be heard about its shortcomings.
 
A really nice place.
It could be that whomever underwrites AAA's coverage is bailing out of CA entirely based upon fire potential even for properties that wouldn't see any fire risk.
I'm with you in that I'd personally shop all of my coverage and I'd let AAA know that it's all or nothing.
 
One thought. ALL insurance companies are in business to COLLECT premiums. Their GOAL is to NOT pay claims even valid ones and use de-valuation to minimize their payout.
 
Originally Posted by shiny
What a beautiful home you have. Love your wisteria!

They should give you a detailed list of what (in their opinion) needs changing on the property in order to qualify for renewal. Otherwise, I guess they'll only insure homes surrounded by a mile-wide moat of flat gravel from now on.

Thank you! I did 100% of all the landscaping myself. Everything, from design to moving and compacting several hundred wheelbarrow loads of DG. I even built the redwood patio furniture. Summer outdoor living is a big part of our lifestyle. We are very fortunate.

A few more pictures.

Scott

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Originally Posted by SLO_Town
Funny thing is, when I told the agent that there is a fire hydrant directly across the street from us, his reply was "We don't take that into consideration". That's an exact quote. What a joke.

It's not a joke. What good is that fire hydrant if there's no firefighters available to tie into it ? They are, as others have alluded to, factoring in the seemingly frequent and devastating fires that hit California.
 
Originally Posted by hallstevenson
Originally Posted by SLO_Town
Funny thing is, when I told the agent that there is a fire hydrant directly across the street from us, his reply was "We don't take that into consideration". That's an exact quote. What a joke.

It's not a joke. What good is that fire hydrant if there's no firefighters available to tie into it ? They are, as others have alluded to, factoring in the seemingly frequent and devastating fires that hit California.

Once again, it's not just because of wildfires. Where are the emergency services during a hurricane or noreaster? Where are they during a Mississippi River flood? The answer, nowhere. They aren't protecting property. In all those instances, public safety and the safety of emergency workers is paramount.

This is not just a California thing. It may not be coming to Ohio, but it's' going to be coming to other regions that have much larger populations then where I live. This means the risks for insurance companies is even greater.

Scott
 
We are with Pacific specialty insurance. They told us that we/I had to replace my siding,my roof,add roof gutters etc or they will not renew us next may. This is a major problem for me as I can't do these things unless I mortgage the place. Something I really dont want to do.
 
Seems to me the entire insurance industry risk profile has to be re-done in California. The first wave will be companies simply getting out of the area and then the ones staying will jack premiums through roof. I suppose there could be help from Washington like they under write insurance along the Florida coast.
 
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Update, I called Farmers this afternoon and gave them all the specifics.

They are happy to get my business and are able to insure everything. They even allow for OEM parts for auto repairs and setting a dollar value on my insured vehicles.

Also too, I had another miserable experience with AAA recently. See my post from December. https://www.bobistheoilguy.com/forums/ubbthreads.php/topics/4960771/1

A 40 year relationship, and they [censored] it away. Good riddance AAA!

Scott
 
Originally Posted by Jarlaxle
AAA doesn't actually underwrite insurance...could be the company that does is bailing out of Cali.

Didn't know that. So you;re saying they're just a middle man. All the more reason to drop them!

Scott
 
Originally Posted by Chris142
We are with Pacific specialty insurance. They told us that we/I had to replace my siding,my roof,add roof gutters etc or they will not renew us next may. This is a major problem for me as I can't do these things unless I mortgage the place. Something I really dont want to do.

Chris, don't mortgage your home!!!! Keep looking, someone will insure you.

See this link, info at the end. https://www.10news.com/news/aaa-not-renewing-home-policies-in-risky-fire-areas

Scott

PS We own our home free and clear as well. I wonder if this is a factor for non-renewal. In other words, collusion by corporate/financial entities. Sad to say, it wouldn't surprise me.
 
I wouldn't be upset. I would have told AAA over the phone "No Problem - will oblige.... I'll find another insurer in the coming days".
Wish them well politely- then say goodbye and hang up.
 
Lesson learned: it pays to shop around, and loyalty doesn't mean a thing when it comes to insurance.

Good news is there are other companies out there who would be happy to insure you. Hopefully you'll save some money in the process (or gain better coverage.)

Which reminds me - I need to shop my auto insurance soon.
 
I had pacific specialty stop insuring my home due to "it being in a fire risk wilderness area". I live in a suburban 1 acre parcel development surrounded by vineyards. I switched to USAA and got more coverage for less money. I also got rid of the insurance broker I had used for 17 years because they offered no help when my policy was canceled.
 
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