About Anjeanette Bumatai
I had the pleasure of connecting with accomplished insurance broker Anjeanette Bumtai, at Bumatai Insurance Services, an independent branch of TWFG Insurance Services. One element of buying a house in L.A is finding the best insurance coverage at the lowest prices. Having an expert on your side is crucial to understand how to navigate this market. Here are some tips Ajeanette shared with me that may be helpful to you.
Q&A
Q.)Could you tell us about the major changes in the insurance market in Los Angeles and how they are affecting insurance pricing?
A.)There are two major issues going on in the insurance market right now. 1) Carriers not accepting new business. 2) Fire score rating changes. With limited carriers, insuring homes is pushing new businesses to either a non-admitted /surplus carrier or the CA Fair Plan, if the insurable amount is $3mil or less. The good news is that regional carriers have stepped up. These are companies that are an AM Best rating of “A” or more.
Q.)Any advice on how to keep your insurance price down when shopping for home insurance?
A.)Sad to say, but lower premiums are really a thing of the past. Replacement costs of homes are going up, along with premium increases from carriers. What can be done is look for possible discounts that a carrier may offer. That usually is multi-policy, roof age and security systems. Also, an insured may look at a higher deductible.
Q.)What are the best home safety upgrades to lower your insurance premium?
A.)Safety upgrades that could possibly lead to a discount are a monitored security system for fire and burglary, interior sprinkler systems, automatic shutoff valve for gas and a water pressure monitoring system.
Q.)How important is flood insurance for your home?
A.)Since flood is not a covered peril, it is important to have it, if a home is in an area for possible flooding. Such as homes located by a hillside or below a steep incline. In an area where rain runoff may gather due to insufficient drainage.
Q.)With rates going up and difficulty in some areas in getting insurance when should you put in a claim and when do you just eat the costs to keep the insurance prices down?
A.)It really depends on the type of claim. Multiple claims within a limited time may cause a non-renewal or not look favorable to a new carrier. Insurance is there to use if needed, but cannot make up for poor maintenance of the home.