Homeowner loses house in fire after insurance cancellation
CATHEDRAL CITY, Calif. (KESQ) - A Coachella Valley man is sleeping in his car after losing his home to a fire earlier this month.
Victor Estrada said he no longer had homeowners insurance.
"All of a sudden, they just said we're no longer with you. Figure it out," Estrada said.
Estrada said his policy was canceled, and like many Californians, he couldn’t afford to replace it due to high prices.
His story reflects a growing crisis in the state’s insurance market, where wildfires and rising risk have led insurers to pull back or hike rates dramatically.
“We have seen a 25 to 50% increase simply just on the homeowners insurance,” said Veronica Lopez, a senior loan officer with Secure Choice Lending.
Lopez said there are still options after a disaster, even without insurance.
"The Small Business Administration, they can help with low interest disaster loans, even if they are not business owners," Lopez said. "If they look into their local SBA or go to the SBA website, they may be able to qualify for some assistance through them."
List of Resources
FEMA Disaster Assistance
SBA Disaster Loans for Homeowners
HUD Disaster Resources
Red Cross Disaster Relief Services
Conventional loans offer ChoiceRenovation and Homestyle Renovation
The Cathedral City Fire & EMS also provide resources after a fire with a substantial loss.
"The fire department will issue, to those that are displaced, a gift card from the California Fire Fund to help pay for immediate lodging needs and to replace essential items that were lost," Stephen Tumir, Deputy Fire Chief said. "It can be used for any needs they may have from food to clothing."
He said to assist with ongoing needs, the fire department connects the occupant with a Red Cross representative for continued placement needs and to assist them in any way possible.
"We will make contact with Red Cross while still at the incident and ensure they are provided for before leaving," Tumir said.
Stay with News Channel 3 for the full report at 10 and 11 p.m.
