By Cris Alarcon, InEDC Writer. (April 13, 2025)
El Dorado Hills, Calif. — Lisa McDonald, a recent transplant to El Dorado Hills, secured a homeowners insurance policy with SageSure, a New Jersey-based surplus lines insurer, for approximately $3,000 annually. This was a relief compared to other quotes ranging from $6,800 to $9,000. However, her policy was not renewed after SageSure discovered a propane tank approximately 25 feet behind her home—a common feature in areas lacking natural gas infrastructure.
SageSure’s nonrenewal notice stated that “high and moderate risk properties are ineligible with propane tanks.” This policy has left McDonald and others in similar situations scrambling for alternatives. The California FAIR Plan, the state’s insurer of last resort, offers coverage without considering propane tank presence but at a higher cost—McDonald’s quote was $7,500 annually.
Insurance brokers note that while SageSure is among the few willing to underwrite policies in high fire-risk areas like El Dorado Hills, its propane tank policy is unique. Other insurers, such as Berkshire Hathaway Guard, also consider propane tanks in their underwriting but may be more flexible depending on tank placement.
The presence of propane tanks raises concerns due to their flammability. California Fire Code mandates that tanks larger than 125 gallons be placed at least 30 feet from structures and have a 10-foot defensible space cleared of vegetation.
As traditional insurers withdraw from high-risk areas, surplus lines insurers like SageSure have become more prominent. However, even these insurers are cautious, leading many homeowners to rely on the FAIR Plan, which provides basic fire coverage but lacks comprehensive protections such as theft or liability coverage.
McDonald’s experience highlights the challenges homeowners face in securing affordable and comprehensive insurance in fire-prone regions. With limited options and rising costs, residents must navigate a complex insurance landscape to protect their homes.
For more information on the California FAIR Plan, visit www.cfpnet.com.
