In a recent gathering of the Financial Executives Networking Group’s San Diego Chapter, a captivating discussion unfolded about the challenges haunting insurance carriers in the state of California led by Bill Leversee. Natural disasters, especially wildfires, hurricanes, and floods, have placed immense financial stress on insurance companies, causing some to leave or halt new policies entirely.
Existing legislation, such as Proposition 103, restricts rate hikes for carriers, adding to their financial woes. The California Fair Plan was mentioned as a last-ditch solution for property owners, providing cover for fire-only incidents.
The meeting shed light on the repercussions of increased property valuations on insurance premiums. Risk mitigation strategies such as raising deductibles, installing seismic water and gas valves, and investing in property upgrades were proposed, aiming to curb potential claims.
The role of predictive modeling in risk assessment and pricing accuracy was also deliberated, alongside the urgency for regulatory changes to stabilize the insurance market. The significance of long-term planning for property owners, particularly those with rental properties, was underscored to navigate the shifting insurance landscape.
Bill stressed the necessity of upgrades in property insurance to circumvent premium hikes and maintain eligibility with standard carriers. Discussing the dangers of going uninsured, especially for income-generating rental assets, Leversee emphasized this point.
A broader discussion ensued about the compulsory nature of insurance for financed or mortgaged properties. Banks’ forced placement coverage in specific situations was examined, and the need for property owners to maintain insurance coverage to meet lender requirements was highlighted.
Leversee also put renters insurance into perspective, distinguishing it from homeowners insurance by focusing on personal belongings and liability rather than property structure coverage. He recommended specific liability coverage amounts for renters to consider.
In a Q&A session, attendees asked probing questions about self-insurance, necessary cash reserves for adequate disaster coverage, and the struggles of obtaining insurance in high hazard zones. Leversee offered valuable insights into surplus lines, the California fair plan, and the significance of various insurance policies to tackle different risks.
Future topics, including beneficial ownership information reporting and executive compensation packages, were announced for upcoming meetings. The event drew to a close with plans for a December social gathering, encouraging attendees’ participation. Overall, the meeting served as a significant platform to gain insights into insurance coverage intricacies and the challenges faced by property owners and renters amid the current insurance market conditions.
About Bill Leversee:
Bill Leversee, is the owner of Falcon West Insurance Brokers Inc.
Bill’s focus is to provide his clients with the right amount of insurance to manage and protect the quality of their business and lifestyle. The goal of his team is for all of his clients to have an excellent experience in the purchasing and ongoing management of their necessary insurance coverage.
What sets him apart from others in the industry:
- Available to review your current policies in a timely fashion
- Provides honest, meaningful comparisons of coverage and premiums
- Demystifies and simplifies the insurance buying process
- Removes the pain of understanding insurance and delivers peace of mind – you can trust you have all the coverage you need at a fair rate.
