PURE Specialty Exchange (PSE) has announced an expansion of its high value homeowners coverage into six additional Western states. These include Arizona, Colorado, Hawaii, Montana, Utah and Wyoming.
According to a Press release, this move aims to address the growing demand for non-admitted insurance solutions in regions prone to natural catastrophes, such as wildfires and hurricanes, and for unique property uses like short-term rentals.
The product has been described to be designed for properties in coastal and wildfire-exposed areas, which require up to $50 million in coverage. These areas often see traditional insurance carriers limiting capacity or withdrawing altogether due to their challenging risk profiles, leaving a significant gap in the market.
“Sometimes PURE members buy and build in areas that are exposed to catastrophes like wildfires and hurricanes. They might choose to rent out their homes on a short-term or seasonal basis when not in use,” noted Bryan Luker, vice president and program manager at PSE. “Whatever the case, if the risk profile falls outside of PURE’s appetite, this expansion allows us to provide a solution and demonstrates our commitment to the membership, even when many other markets would decline to offer coverage.”
PSE operates as a reciprocal exchange where members contribute to the carrier’s surplus through surplus contributions, helping to lower capital costs and, consequently, premiums over time. Members appoint an Attorney-in-Fact to oversee daily insurance operations, with PURE Specialty Risk Management, LLC, fulfilling this role for PSE. The structure also allows for underwriting profits or surplus gains to be allocated back to active members in their Member Savings Accounts.
In addition, members get to access the same claims, risk management, Member Advocate, and service resources as PURE, including alerts from the PURE Situation Room and a Wildfire Management Program. PSE’s high value homeowners coverage is already available in Alabama, California, Florida, Georgia, Louisiana, Massachusetts, Mississippi, North Carolina, New Jersey, and South Carolina.
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