Notable for its dense population of almost 10,000 people per square mile, Washington D.C. is a unique risk for many homeowners insurance companies. The District of Columbia Property Insurance Facility, or commonly known as the D.C. FAIR Plan, was created by the D.C. legislature for homeowners in the state. The DCPIF or FAIR Plan offers basic property coverage for commercial buildings and homes. Consumers will find a will also find policies in the through a competitive private marketplace.
Chilly winters have freezing average temperatures that cause a necessity for homeowners to be proactive in mitigating the potential for damage from the cold weather and the roughly 15 inches of snow a year. While many residents are accustomed to needing to winterize their homes, those that do not will likely have water claims. Blizzards come regularly to the District of Columbia, with "Nor'Easters" often affecting large sections of the east coast.
From spring to summer residents observe mild to warm climates. The combinations of heat and humidity result in frequent thunderstorms. Claims from lightning and wind damage effect homeowners can cause many homeowners to be labeled as high risk. Hurricanes that move inland are often weakened by the time they reach Washington D.C. The flooding of the Potomac River, which is directly related to high tides, storm surges and run off, can impact homeowners powerfully.
Vandalism and burglaries are reportedly high in some areas which can classify some as a high risk to insurers. The average annual property crime rate is 53 for every 1000 residents, or an annual average of nearly 30,000 property crimes. Policy holders are urged to try to mitigate these issues with alarm systems and other camera and monitoring equipment.
Many insurance companies now have responded with different deductibles, surcharges or credits for consumers, not only based on the age of the roof, but now the type of roof and materials, water detection systems, cameras, and security systems. While the market public and private market in D.C. remain thriving and competitive, consumers will find themselves more and more looking toward mitigating risk both to protect their properties from claims and to keep their insurance premiums from increasing.