Rancho Bernardo Homes At Risk After Canceled Fire Insurance

Farmers Insurance has canceled fire insurance on hundreds of homes in Rancho Bernardo, causing residents to worry. The insurance provider chose not to renew the policies due to wildfire risk.

Canceled Fire Insurance May Lead to Higher Assessments

Many condo owners have already reported rising fire insurance costs in California. Now, residents of the Morada condo complex in Rancho Bernardo feel worried after their provider canceled fire insurance on their homes.

According to the residents, Farmers Insurance refused to renew the fire insurance policy on the complex. Because the condos are connected, the entire complex requires a single policy of about $80 million. The reason for termination was apparently due to the increased wildfire risk. The termination affects a total of 338 units in the condo complex.

As Farmers won’t renew their policy, the condo is now looking to secure insurance in the secondary market, similar to several other condos that lost their fire insurance coverage. This will undoubtedly cost more money, so residents are naturally concerned about special assessments.

According to one resident, Farmers prepare their wildfire maps, and those maps show that many condo complexes are at risk of wildfires. Farmers, though, will not disclose the proprietary maps.

The Morada condo complex managed to find a temporary policy on the secondary market. This will only cover the first quarter of the year. With special assessments poised to reach $2,500, residents are understandably anxious. After all, they will need to pay that special assessment in addition to the $500 they spend every month.

Probable Homelessness in the Future

Banks are insisting on wildfire coverage to have collateral for their mortgage. And with fire insurance cancellations on the rise, it is not impossible to expect a surge in surgelessness. Cancellations cause insurance costs to increase, which, in turn, causes housing prices to increase.

This is especially problematic for residents who live on a fixed income, just like the Morada condo owner.