Insurance Hotline: 7 On Your Side, insurance experts answer viewer questions

Thursday, May 8, 2025 6:49AM

7 On Your Side, insurance experts answer viewer questions

7 On Your Side and a team of tax experts answer your questions on May 7 about your homeowner or renter insurance and more.

SAN FRANCISCO (KGO) -- The state of the insurance industry in California is full of uncertainty. Have questions about your homeowner or renter insurance? 7 On Your Side and a team of industry experts are here to answer your questions!

On Wednesday, May 7 from 3 to 7 PM, 7 On Your Side and a team of insurance experts will answer your questions about non-renewals, increasing premiums, and what possible changes may come.

Submit your question using the form below at any time, or call 866-561-2611 on May 7, 2025 between 3 and 7 PM.

We will post viewer questions and their answers on this page, so be on the lookout for your question right here -- plus you may learn new things through other people's questions!

Viewer name: Cynthia I.
Viewer question: How are they going to ensure that insurance prices don't go up for homes NOT in high risk fire or flood areas? Thus far, it seems we are being penalized with higher prices (and less choices for insurance companies) because of the high risk areas.
Volunteer name / organization: Orlando Frasca from Acrisure - Walnut Creek
Answer: The likelihood is that the higher risk areas will face even higher prices as they don't want to penalize those in lower risk areas.

Viewer name: Michael M.
Viewer question: My cabin is insured by AAA for everything EXCEPT Fire. I have fire protection under the California Fair Plan (not really fair). Cabin is paid off and I needed to know if I drop the California Fair plan, will that in any way cause a problem with AAA covering everything with the exception of Fire?
Volunteer name / organization: Karson Kwan - Kwan Insurance Services
Answer: If you drop your Fair Plan coverage, your AAA difference in conditions policy will likely cease to provide coverage, as nearly all difference-in-conditions policies require that there is an underlying CA Fair Plan policy in force before coverage in the DIC policy is afforded. I would advise you to read through the policy terms carefully (or reach out to your agent) to verify whether the DIC is still valid if the CA Fair Plan is cancelled. Some alternative insurance markets may be able to offer policies with wildfire exclusions, but you may have to reach out to an agent/broker to help find you a policy like that.

Viewer name: Fan A.
Viewer question: I'm 73 yo female with homeowners and insurance policies that are due MAY 15. I'm legally deaf so please text me if needed. My agent did not reply to my multiple emails or texts. I called State Farm thru RELAY service and was told statements would arrive before the first week of May. Nothing received. I called again and this guy said he would email the statements but it takes time. I think he is gaslighting an elderly woman. Renewal due May 15!
Volunteer name / organization: Cody Webb - Cuanto Consulting
Answer: Fire your agent and get a new one! You deserve better treatment and there are many agents who would love your business.

Viewer name: Mindy S.
Viewer question: I was paying 3,200 per year for insurance. I live in the Santa Cruz mountains and have been dropped by AAA and now State Farm. The only coverage I can find is the CA Un-Fair plan which is going to charge 7,740 for the fire coverage and then another 4,032.50 from State Farm for the wrap-around coverage. I've personally contacted many companies, including Lloyd's of London, and I cannot find any that are able to insure my home. Do you know of any companies that offer home insurance in the Santa Cruz mountains that would be affordable? Thank you, Mindy
Volunteer name / organization: Karson Kwan - Kwan Insurance Services
Answer: Unfortunately, with the state of today's insurance market in California, the Santa Cruz Mountains are considered a high wildfire risk area, since those mountains consist primarily of trees, brush, and vegetation. At this time, it is unlikely that you will be able to find another carrier that can provide coverage for the wildfire exposure. For the wrap-around (difference-in-conditions) coverage, you are able to shop around with other insurance companies and agents/brokers in your area to find you a lower priced difference-in-conditions policy, but the wildfire policy will likely have to be obtained through the CA Fair Plan regardless of which carrier will insure the difference-in-conditions policy. It would be advisable to contact an independent insurance agent/broker that can help you shop around at different carriers to provide multiple options for you.

Viewer name: Cynthia H.
Viewer question: I have heard that zone 0 will be the law in 2026 (no plants within 5 feet of a structure). How will this be enforced and will it affect my ability to get homeowners insurance?
Volunteer name / organization: Cody Webb - Cuanto Consulting, LLC
Answer: While this level of clearance is desirable, it will be almost impossible for this to be verified and enforced throughout the state. Some technological solutions, such as aerial imagery, may help, but verification is one of the biggest challenges facing the insurance industry. We are still looking for solutions to this. Some proposals have been advanced to create a statewide database of mitigation, but this would require a massive effort. Ultimately, I would advise consumers to remove plants close to the house, but I don't think such a requirement could be enforced.

Viewer name: Mark P.
Viewer question: Our homeowners insurance premium doubled in one year (2023 to 2024) from about $4000 to about $8000) and is now being dropped (non-renewed) in 2025. Is it legal for the insurance company to increase the premium this much in one year?
Volunteer name / organization: Carmen Balber, Consumer Watchdog
Answer: Insurance companies must get approval for all rate increases, and they can legally vary significantly from year to year. It really depends on the specific reasons for your One major reason some homeowners have seen big overnight increases is because insurance companies are using private companies' technology to assign fire risk scores. Unfortunately, the insurance commissioner is not requiring insurance companies to disclose the reasons behind their risk scores.

Viewer name: Pat L.
Viewer question: My mom owns a triplex. State Farm will not be renewing my mom's homeowners insurance because they don't cover apartments. I've called several big name insurance companies with none accepting new customers. Reasons range from only covering auto, not in California, having to wait to apply 3 years from cancellation, only with less than 2 tenants, simple decline. How do we find just homeowner insurance for a triplex? Thank you
Volunteer name / organization: Orlando Frasca Acrisure Insurance- Walnut Creek
Answer: There are independent insurance agencies that can insure triplexes. My staff does this on a regular basis; reach out to a non "direct" agency that brokers for multiple insurance companies; they'll be able to help

Viewer name: Nancy C.
Viewer question: Allstate was the 1st company to increase their car insurance rates 38% (only in CA) about 2 years ago. I've been with them since 1980's with a few minor accidents over 40 years. I had 1 accident last year, and purchased a new car this year. Now paying $6k a year for car insurance (more than my new car payment). I'm on fixed income (social security). How can they raise rates like this ? So wrong. I can't afford to pay insurance & car payment & mortgage payment
Volunteer name / organization: Carmen Balber, Consumer Watchdog
Answer: Insurance companies do have to get approval for rate hikes, but that doesn't mean you're getting all the discounts you're entitled to. There are several things you can do to try to reduce your rates. Make sure your insurance company has your correct annual mileage. Many are resetting policies at a standard 12,000 miles driven annually - if you drive less you can correct that and it should reduce your premium. If you bought a new car, make sure they also have all of your car's safety features - like a security system, automatic braking, etc - which can reduce rates. And bundling your home and auto insurance policies, if you don't already, can also reduce your rate. If you think you are paying too much at Allstate it's also always a good idea to shop around - get quotes from other insurance companies who may have better prices.

Viewer name: Cynthia H.
Viewer question: My insurance broker just told me that there is a recent change in who can qualify for the Fair Plan. She said if the rebuild cost of your home exceeds $3MM, you cannot qualify for the Fair Plan. She said it was not that way last year. Is this true? It cost me $4MM to rebuild my home lost in the Tubbs Fire.
Volunteer name / organization: Orlando Frasca, Acrisure Insurance - Walnut Creek
Answer: The Fair Plan covers up to a MAXIMUM of $ 3MM, you can still qualify for Fair Plan, but the extra $ 1MM you need has to be procured by an "excess" insurance company that will build on top of the Fair Plan. An independent agency would be able to help you with this.

Viewer name: Jan
Viewer question: I have auto insurance through AAA and recently added my home to the plan as well. My wife had an accident in 2024 and we recently got a letter saying they will not be renewing us for car insurance starting May 17th. I think it is because of my wife's accident. I am low income with 2 kids, my wife is a student, I live in Sacramento and work in San Francisco. Without a car, we will be in trouble. What are my options?
Volunteer name / organization: Carmen Balber, Consumer Watchdog
Answer: First you should confirm with the insurance company why they aren't renewing you. It may be a reason you can correct. California has a Low Cost Auto Insurance program - you can learn more at mylowcostauto.com. It has strict income eligibility and driving record requirements. However, if you qualify, average premiums are in the $400-500 range.

Viewer name: Jeanette S.
Viewer question: Please explain secondary market homeowners insurance. Is it as reliable as primary?
Volunteer name / organization: Karson Kwan - Kwan Insurance Services
Answer: This depends on what you mean by "secondary" market. In California, there are alternative insurance companies that operate as excess & surplus (E&S) carriers, or sometimes known as non-admitted carriers. These carriers are not subject to the financial solvency regulation and enforcement that apply to California licensed admitted insurers. This is not to say that all E&S carriers are unreliable or not trustworthy, but it is important to evaluate the underwriting carrier's financial standing, by evaluating their financial rating through one of the insurance carrier rating bureaus, such as AM Best or Demotech. These rating bureaus will be able to evaluate and inform the consumer of the financial size, standing, and stability of the company, providing the consumer with faith that the insurance carrier will perform and deliver when needed.

Viewer name: Tom L.
Viewer question: The premium for my homeowners insurance through American Modern more than doubled this year from last year. It went from $3306 to $6696. I have had no claims in over 45 years as a homeowner. Doesn't the state insurance commissioner have to approve such large increases?
Volunteer name / organization: Carmen Balber, Consumer Watchdog
Answer: The insurance commissioner does have to approve all increases, but we would need more information to know why your specific policy went up so much. One thing that has impacted recent rate increases is fire risk. Insurance companies are using private companies to set fire risk scores, with little transparency or explanation for how those risk scores are set. You are entitled to ask for the reasons for the rate increase.

Viewer name: Art W.
Viewer question: We recently received an Estimate Replacement Cost worksheet from State Farm "to update the Replacement Cost Estimate" of our home. How much can they increase premiums and/or can they drop our coverage based on this information? Also, what is the best way to avoid getting over-coverage? For instance, if an item listed is either no longer in use or very cheap and I don't care about getting it replaced, should I just say I don't have it?
Volunteer name / organization: Cody Webb - Cuanto Consulting
Answer: Updating your replacement cost can increase your premium significantly. The good news is that such an increase also increases your coverage and ensures you have enough coverage in the event of a total loss. The best way to make sure it isn't overestimated is to request and verify all the details that went into the valuation, and work with your agent to correct any errors. I also recommend getting price comparison quotes from a second agent, and verify that the agent is open and willing to provide transparency for your replacement cost estimate before selecting one.

Viewer name: Linda M.
Viewer question: My homeowners insurance went up, a 250% increase from last year. I have not had any claims. Is that legal to have that huge of an increase? I am not in the fire zone. My insurance was $1900 in 2024, and now $6900 for 2025.
Volunteer name / organization: Dan Veroff / Merlin Law Group & United Policyholders
Answer: Insurance premiums have been steadily increasing without regard to whether a customer has had claims or being in the fire zone. Insurance companies are required to obtain approval from the Dept. of Insurance for rate increases. The increases must not be excessive under the law, which the Dept. reviews.

Viewer name: Yvonne
Viewer question: How much notice does an insurance company have to give you if they won't be renewing your insurance?
Volunteer name / organization: Dan Veroff / Merlin Law Group & United Policyholders
Answer: 75 days written notice for homeowners insurance.

Viewer name: Kyra
Viewer question: my homeowners insurance is being dropped as they will no longer provide homeowners insurance in California. how do I find out what insurance companies are still providing home insurance in California
Volunteer name / organization: Cody Webb - Cuanto Consulting
Answer: Find 1-2 agents in your area. Check online reviews to select a quality agent. Ask which carriers they offer ("independent") agents may have more options. Some carriers also sell policies online.

Viewer name: Howard B.
Viewer question: My Homeowners Policy Renewed on Mar 17, 2025. My Mortgage Company MrCooper (NationStar) asked for proof of insurance. Uploaded proof to their Website on Mar 19, 2025. Got another email on April 2nd saying they never got it. Uploaded another copy and got an email back on April 7 saying they received my policy. Got another email today saying my insurance expired Mar 17. I uploaded it again today and called my insurance Co (California Casualty) to send another copy. My problem is that I cannot get a human on the phone when calling the Mortgage Company. I am frustrated and not sure what to do.
Volunteer name / organization: Karson Kwan - Kwan Insurance Services
Answer: I would advise you to reach out to your insurance agent to get the most recent copy of the declarations page for your insurance policy, then double check that the dates listed on your declarations page/proof of insurance for your policy is listed as the policy period from March 17, 2025 to March 17, 2026. When you upload it to the online portal, it is likely that it goes through an automated system to scan the proof of insurance for the address, dates, and coverage limits. Agents often deal with submitting evidence of insurance to the mortgage companies on behalf of their clients, so you can ask them for assistance if you are still having trouble with it.

Viewer name: Clay J.
Viewer question: For many years, our neighborhood had a wildfire rating by the various agencies of a 2 (low) on a 0-10 scale. Recently a new rating entity was approved and our neighborhood rating was increased to an 8 (high). No reason was given and no material change to our neighborhood took place. How can it be legal for a neighborhood that was rated at a 2 for many years to suddenly be rated as an 8 when literally nothing has changed about the neighborhood? The trees are all way up on the hills and the grass at the base is mowed back 30 feet. Our premium went up 500%!
Volunteer name / organization: Carmen Balber, Consumer Watchdog
Answer: I'm not sure what wildfire rating you're referring to. A few things have happened recently. CalFIRE recently updated state wildfire hazard maps for the first time in more than a decade. The dramatic change on those maps in some areas is largely due to the fact that 1)they were so outdated and 2) climate change has exacerbated extreme weather and the risk of wildfires has in fact increased. However: those maps are not used by insurance companies so shouldn't affect your rates.

Viewer name: Kathy
Viewer question: I am selling my home and moving to Sacramento area. State Farm will not insure my new home. How do I start over with a new company. How do I find out which company will insure the areas I am looking?
Volunteer name / organization: Dan Veroff / Merlin Law Group & United Policyholders
Answer: You can find out by contacting the insurance companies and agents. You can also contact an independent insurance broker who can shop multiple companies for you and advise what is available. Starting over with a new company is common these days, it is not a difficult process, as long as you can actually find companies willing to insure the property.

Viewer name: Nathy H.
Viewer question: I would like to know, rate for town home costs per year
Volunteer name / organization: Cody Webb - Cuanto Consulting
Answer: Contact and independent agent or shop for quotes online. The California Department of Insurance also provides a price comparison tool online.

Viewer name: Cameron
Viewer question: State Farm sent us a non renewal notice on our apartment bldg last month with no specific reason. We have had no luck getting a replacement policy and don't want to resort to the California FAIR plan. What should we do? Thank you.
Volunteer name / organization: Karson Kwan - Kwan Insurance Services
Answer: Every insurance company in California is required to provide a reason on the non-renewal notice that you receive. State Farm has been exiting the apartment building insurance market in California for the last few years. Depending on where your apartment is located, you should still be able to get insurance coverage for your apartment building through a variety of other commercial insurance carriers. Your best bet is to contact an independent insurance agent that can shop a variety of different insurance carriers for you on your behalf.

Viewer name: Stormy P.
Viewer question: For those paying renters insurance at an apartment, do we need to be worried about being dropped? It's becoming too common with homeowners.
Volunteer name / organization: Cody Webb - Cuanto Consulting
Answer: It is possible some renters policies will be dropped, but much less likely than homeowners policies. There are many inexpensive options for renters insurance, so I wouldn't worry.

Viewer name: Rosemarie C.
Viewer question: Is there something else we need to do with our home insurance before our death separate from what's in place in our Living Trust?
Volunteer name / organization: Karson Kwan - Kwan Insurance Services
Answer: If your home's title is titled in the name of your trust, you should reach out to your insurance agent to find out how they can make sure that the trust listed on your title is also listed on your home insurance policy. Upon your death, some insurance carriers may require your successors to rewrite the home policy to the name of the successor.

Viewer name: Rick Velez
Viewer question: What is the best way to shop for home insurance and auto insurance? Is it possible to combine providers? Seems extremely difficult to find reasonable insurance options
Volunteer name / organization: Karson Kwan - Kwan Insurance Services
Answer: The best way to shop for home & auto insurance would be to contact an independent agency that can shop the rates on your behalf at a multitude of carriers. The independent agent works for you, on your behalf, so they should be working in your best interest to find you the best combination of rates & coverage options. Majority of the time, you will have better luck finding coverage value when you are willing to combine your home & auto insurance providers, as it will result in a multi-policy bundle discount. Your agent will be your best resource and advisor when it comes to asking questions and providing you service as well.

Viewer name: Jeanette
Viewer question: Nationwide will not renew my homeowners insurance after this year. They stated they were not able to conduct a home inspection. I told them I have dogs so I would need to know when they came to do the inspection. They stated they don't make appointments. I believe they don't want to work with me. I've been with them for 24 years.
Volunteer name / organization: Karson Kwan - Kwan Insurance Services
Answer: If you have been with Nationwide for 24 years, that would likely be the last time that they inspected your home to verify its condition. Nationwide has been conducting renewal inspections to ensure that the properties are in proper condition since the last time they saw it in person. They are not required to contact you when doing inspections unless they are planning to do an interior inspection. The renewal inspection they are doing is likely going to be exterior only. I recommend reaching out to your agent to see if they can assist you with the inspection requirements from Nationwide and find out what type of inspection it is. They are going to be your best resource when it comes to working with the carrier.

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