08 Aug Navigating the World of Insurance: Tips for Securing the Now and the Future
Why Insurance Still Matters—Even When It’s Hard to Get
Insurance is one of those financial tools that many people don’t appreciate until they need it. Whether you’re renting a small apartment or own a family home, coverage can be the difference between a temporary inconvenience and a financial disaster.
But lately, the world of insurance has become harder to navigate—especially for residents in high-risk areas like parts of California, where wildfires have prompted some providers to decline renewals or stop offering homeowners insurance altogether.
So what do you do when your safety net starts to unravel?
At Level Coaching, our mission is to help you become financially fit and fully informed—so let’s unpack what’s happening, why it matters, and how to make smart decisions that secure your present and future.
The Changing Landscape of Insurance in High-Risk Areas
In recent years, insurance companies have increasingly pulled back from covering homes in fire-prone areas, particularly in California. The reason? Rising claim costs, extreme weather, and a growing number of natural disasters have made some regions too expensive or risky for insurers to operate in.
Some of the biggest impacts include:
- Policy non-renewals: Long-time customers being dropped after decades of coverage.
- Fewer options: A shrinking list of insurers even offering quotes in affected zip codes.
- Higher premiums: For those who can still get covered, the price has jumped significantly.
According to the California Department of Insurance, more than 350,000 homeowners lost coverage between 2015 and 2020 in high fire-risk areas. And while state-backed options like the California FAIR Plan exist, they often provide limited coverage at a premium price.
This leaves many families and individuals forced to choose between paying more—or going without.
Renters, You’re Not Off the Hook
If you’re renting, it’s easy to assume your landlord’s insurance has you covered. But that only applies to the property—not your personal belongings.
Renters insurance protects your items (like furniture, electronics, and clothing) and also provides liability protection if someone gets hurt in your home. It often includes loss-of-use coverage as well, which helps pay for temporary living expenses if your rental becomes uninhabitable due to fire, flood, or another disaster.
And the best part? Renters insurance is relatively affordable—usually under $20/month.
At Level Coaching, we recommend all renters, especially those in high-risk areas, prioritize renters insurance as part of their monthly budget. It’s one of the best value-for-coverage tools available to renters today.
The Real Cost of Not Having Insurance
Let’s talk about what happens when you don’t have coverage.
Whether you’re a homeowner or renter, the financial fallout of an uncovered disaster can be massive. Consider this:
- A house fire can cost hundreds of thousands in damages and destroy everything you own.
- Without insurance, you’re on the hook for all of it—and if you don’t have the savings, you’ll be forced to turn to credit cards or loans.
- That puts you on a fast track to debt, missed payments, and potentially a long recovery.
Here’s a real-life example:
Alex, a homeowner in Northern California, was recently dropped by her insurer due to increased wildfire risk. Thinking it was unlikely her house would be affected, she delayed finding a new policy. Two months later, a nearby wildfire caused smoke damage and forced her to evacuate. Without coverage, she had to dip into her emergency savings and max out two credit cards to cover temporary housing, repairs, and cleanup.
This kind of financial hit can set a family back years—and it’s 100% preventable with the right insurance.
Tips for Securing Coverage in Today’s Market
Whether you’re in a fire-affected area or just trying to protect your assets, here are some practical tips to help you secure and keep the right insurance:
1. Work With an Independent Agent
An independent insurance agent can shop multiple carriers to find you the best policy. This is especially helpful if your region is high-risk or you’ve been dropped by your current provider.
2. Bundle and Save
If you have both auto and home (or renters) insurance, consider bundling them under one company. It can reduce premiums and increase your chances of staying covered, as providers may be less likely to drop bundled customers.
3. Be Proactive About Risk
Install fire-resistant roofing, clear brush, and use security systems to reduce risk. Many insurers offer discounts for these upgrades—and it can make your home more attractive to underwriters.
4. Document Your Belongings
Take photos or videos of your possessions and store them digitally. In the event of a claim, this can speed up the process and help you recover replacement value rather than settling for partial coverage.
5. Check State and Federal Options
If private insurers won’t cover you, look into government-backed plans like the California FAIR Plan, but be aware of their limitations. You may need to purchase supplemental policies to fill the gaps.
6. Review Your Policy Annually
Don’t just “set it and forget it.” Your policy should evolve with your life. If you’ve added valuables, remodeled, or changed addresses, update your coverage.
Insurance = Protection, Not a Burden
We understand that insurance can feel like an extra cost—especially when finances are tight. But it’s actually a core tool in any solid financial strategy.
Think of it this way: you’re not paying for something you’ll never use. You’re investing in peace of mind. You’re protecting your savings, preventing future debt, and ensuring that when life throws you a curveball, you’re not financially destroyed.
At Level Coaching, we talk to clients every day who regret not having coverage before a crisis—and we help them rebuild. But we’d rather help you avoid the crisis altogether.
Final Thoughts
Navigating today’s insurance market can be stressful, especially when providers are pulling out of areas like California, or raising rates in response to natural disasters. But going without coverage is simply not worth the risk.
Whether you’re a renter, a homeowner, or somewhere in between, make sure you’re protected—not just because it’s smart, but because your future self will thank you.
If you’re unsure where to start, connect with a Level Coach. We’ll help you understand your financial picture, create a budget that includes the right insurance, and make sure you’re covered for whatever lies ahead.
Written by Nichole Olds,
August 2025