The California Insurance market is tough. Your broker shouldn’t be “lazy.”
⚠️ Market Alert: Private carrier “Saturation Quotas” change daily. A quote available today may be gone tomorrow. If you are non-renewed, act immediately.
Let’s be honest: This is the worst insurance market we’ve seen in 20 years. Rates are up 100-300%, carriers are looking for any excuse to drop policies, and what’s available today might be gone tomorrow. It’s frustrating, and there is no eloquent way to put it.
Don’t let panic lead to bad decisions that can leave you exposed. For many Californians, the California FAIR Plan is now the only option. The danger isn’t being on the California FAIR Plan—it’s having a broker who doesn’t know how to write it correctly.
The “Lazy Broker” Mistake: Why Your FAIR Plan Policy Might Be Wrong
Many agents simply don’t understand how the California FAIR Plan works. When you get dropped by a major carrier, the “lazy” approach is to simply duplicate your old coverage limits onto a new FAIR Plan policy.
This is a critical mistake that puts your assets at risk.
For example, traditional policies often calculate Personal Property coverage as a percentage (e.g., 70-80%) of your Dwelling limit. If you have a $2,000,000 home, do you really need to pay to insure $1,600,000 worth of furniture and clothes? Likely not.
By duplicating your old policy, lazy brokers often leave you drastically over-insured in some areas (wasting thousands of dollars) and under-insured in others (risking your ability to rebuild).
This is especially dangerous if your home is located in High-Risk Wildfire Zones, where accurate coverage is the difference between rebuilding and walking away.
The Einhorn Difference
A FAIR Plan policy must be built with your current insurance needs in mind, not copied from either an outdated policy or a policy that wasn’t written correctly in the first place. See the difference:
| Feature | The “Lazy Broker” Approach | The Einhorn Expert Method |
|---|---|---|
| Policy Design | Duplicates your old HO-3 limits blindly. | Built from scratch based on current construction realities. |
| Personal Property | Often over-insured (70% of dwelling value). | Customized to what you actually own, often saving you money. |
| Guest Houses & Detached Structures | Often ignored (leaving you with zero coverage). | Verified for kitchen/occupancy & properly endorsed. All structures not touching the home need separate coverage (including decks touching the home). |
| Rebuild Cost | Uses vague software estimates. | Validated reconstruction software utilized, but our knowledge of construction & real estate often adjusts these figures. |
| Outcome | Overpriced premiums + coverage gaps. | Optimized coverage + potential savings. |
Construction-Based Underwriting: We Don’t Just Guess
Most insurance agents have never set foot on a construction site. We don’t solely rely on 3rd-party software (which is not always reliable) to estimate your home’s value.
Our agency is led by a realtor with personal construction experience involved in over 200 real estate transactions.
- We look at the difficulty of rebuilding on your specific lot (slope, access, debris removal).
- We analyze local construction costs.
- We encourage you to speak with local licensed contractors. Unless your insurance agent is a licensed contractor with current construction experience in your area, it is best you consult with a local, active and licensed contractor to truly determine your property’s reconstruction costs.
We build a policy based on current market conditions, ensuring you have enough to rebuild without paying for coverage you may not need.
Recognized Industry Experts: As Heard on NPR
We haven’t just adapted to the California insurance crisis; we’ve been navigating it and advocating for homeowners for years.
Long before the current market collapse, Einhorn Insurance was called upon as an expert guest on NPR’s “Air Talk with Larry Mantle” to educate the public on the growing wildfire threat and how it impacts home insurance policies.
Listen to our 15-minute expert interview below to understand the roots of today’s crisis and why having an experienced advocate matters more than ever:
The Missing Piece: The Difference in Conditions (DIC) Policy
A FAIR Plan policy is not a complete home insurance policy. It can cover damage from Fire, Wildfire, Lightning, Internal Explosion, Smoke, Wind, Hail, Riot, Vandalism, Malicious Mischief, Aircraft and Vehicles, but excludes necessary coverages such as, but not limited to liability, theft, and water damage.
To offer complete coverage and mimic a “traditional” home insurance policy, we don’t just offer a FAIR Plan policy. We pair the CA Fair Plan policy with a Difference in Conditions (DIC) policy (often called a “Wrap-Around”). This fills the gaps.
- FAIR Plan: Covers damage from Fire, Wild Fire, Lightning, Internal Explosion, Smoke, Wind, Hail, Riot, Vandalism, Malicious Mischief, Aircraft and Vehicles
- DIC Policy: Covers Liability, Theft (in owner occupied homes), and Water Damage.
- Result: Comprehensive protection.
Stop Guessing. Get a Strategy.
Don’t settle for a “copy-paste” policy. Whether you need a new policy or a review of your existing FAIR Plan coverage, we can help you find the balance between safety and cost.