Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

6 Issues Driving Homeowners Losses & What to Do About It | Homeowners Insurance Product Highlight

Published on August 7, 2018

For most people, their home is the biggest purchase they’re ever going to make. 

With the recent fires causing such destruction, it has us all thinking about how important our homes are. For most of us, it’s more than “just a house” — it’s the place where life unfolds. That’s why insuring it with the proper coverage is essential, and that’s on our minds more now than ever.


  1. Larger Events: Between the Valley Fire (Middletown), 2016 Soberanes, Chimney, & Erskine Fires, & the 2017 Wine Country Fires, California is experiencing large catastrophic fire losses like never before. Over the past 3 years, 1.3 million acres have burned due to wildfires.
  2. More Frequent Fires: These larger events are seemingly happening more frequently than ever before. California has never experienced 3 years in a row like 2015, 16 & 17. In Northern California alone, there has been a 256% increase in frequency of Sierra Nevada wildfires due to earlier spring snow melt and run off.
  3. WUI: Wildland Urban Interface – we are continuing to build and live in areas that have historically burned every 15-20 years. There are 4.7 million California homes in these WUI areas.
  4. Increased Construction Costs: Environmental cleanup, material costs, shortage of contractors, skilled, and unskilled laborers, and transportation costs in remote areas are all factors driving up rebuilding costs.
  5. Artificially Low Pricing: Insurance in general has been experiencing artificially low pricing due to an infusion of outside capital from Private Equity, Venture Capital, Mutual Funds, Pension Funds, and others. Once these players exit it will lower surplus and drive up rates.
  6. Non-Cat Losses: In addition to catastrophic loss, California property results have been poor due to increased loss costs from water, theft, and liability claims. 

What Your Insurance Customers Can Do About It:

Create/Maintain Clearance — Defensible space is the most important factor in protecting your property from wildfire.

Tree Removal — Remove any dead or dying trees, any trees within 10-15 of the property, and maintain proper tree spacing

Laddering — Remove any branches on trees up to at a minimum clearance of 10’ from the ground

Propane Tanks — Remove all vegetation around or overhanging your propane tank. Ensure emergency shut off value is easily accessible and functional.

Address Property Condition — Help show underwriters why your property is worth insuring, general poor upkeeping will preclude your home, while proper upkeep will improve likelihood of acceptability and continued coverage

Roof Upkeep— Ensure quality condition and replace with fire resistant material

Vents — Close or block vents where possible to prevent flying embers from entry

Access — Ensure wide entry for fire trucks to easily access your property

Active Maintenance — Higher protection classes will have annual inspections. Continued proactive risk mitigation is essential

To download a pdf flyer with the above info on it to pass on to your customers, click HERE

Homeowners & Dwelling Fire Insurance Product Highlights:

Homeowners & Dwelling Fire 

Available Forms & Endorsements:

  • HO-3, HO-8, DP1, & DP3
  • Extended Replacement Cost – Contents Replacement Cost Available
  • Water Backup Available
  • Personal Injury Available
  • Scheduled Personal Property
  • Minor Renovation Work
  • Seasonal/Secondary/Vacation Rentals
  • Older or Lower Value Homes (Must Be Well Maintained)
  • Brush Areas w/ 200 ft. Clearance
  • Protection Classes 1-10
  • Log Homes
  • Hobby Farms
  • Slope Issues – OK
  • Post & Pier – OK
  • Multiple Losses – OK
  • Wood Stoves – OK
  • Wood & Flat Roofs – OK
  • Lapse In Coverage – OK
  • LLC, Trust, Corporation – OK
  • Private Lenders OK


Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for personal lines insurance and commercial lines insurance in California and surrounding areas.

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