Amica Insurance, a leading reinsurance provider, says it is now offering policies to cover “emergency” home insurance in the event of a home fire.
It said Monday that it is starting the process for customers to apply for such policies as a result of a state fire insurance law enacted in 2015.
The law requires insurers to offer homeowners insurance in cases of a catastrophic fire and requires that policyholders pay the premium for each insured household.
“In this case, the insurance is an emergency policy and can be used in the case of an emergency, if the insurance provider has determined that it would be in the best interests of the homeowner to do so,” Amica said in a statement.
“The policy will not be used for any other purpose.”
The state law requires homeowners to get a policy with an “emerging” price that matches their risk profile, and does not require that homeowners get coverage in the disaster.
However, it does require insurance companies to offer home insurance for any property that has a higher risk of fire than that of a typical homeowner, and to cover all property owners.
In some cases, a homeowner’s home may be more vulnerable to fire than a typical home, according to a 2014 study by the National Association of Insurance Commissioners.
It found that the average fire loss for an average home in California is $3,200 per year.
The study found that “a typical house is more likely to burn down than a fire truck.”
The California Fire Insurance Department does not release details of how many policies it issues for homeowners who need them, but a spokesperson said in an email that the department is in the process of issuing more than 600 emergency policies this year.
Amica is among a handful of insurers that offer emergency policies.
The company said that it expects to offer about 300 emergency policies for 2018, which it expects will cover an average of 50,000 homeowners, depending on how quickly the market recovers.
The insurance company said it will begin issuing the policy on Jan. 5, but did not provide a timeline for when that would take place.