HOMEOWNERS INSURANCE OH MY!

Unless you happen to be paying cash for your home, you’ll be required by your lender to get a homeowners insurance policy. If you are buying in an area considered high or very high Fire Risk area, you can expect to pay more. Areas in California that fall into these risk areas are having to get a policy from the California Fair plan that covers fire, and then a supplemental policy for the rest of your coverage.

Instead of $1,400 you may be looking at $5,000-$7,000 a year for insurance, and sometimes $10,000+ depending on property and location.

Not that it matters much to your pocketbook, states like Florida, Louisiana, and Texas are much higher on insurance costs due to annual weather events that cause damage in those states. Insurance companies have been using drones and other aerial imaging to look at properties from above. This has been called into question in reference to invasion of privacy. Insurance companies are looking for vegetation growth, abandoned vehicles, equipment, or debris on the property. They also look at the condition of the roof. If the roof has moss on it, they are requesting a replacement of the roof. Lots of people are getting dropped or seeing increases in their policies. If you are buying soon, be aware of these changes. If you are an existing homeowner, you may want to check in with your agent to see if you’re properly covered. Make sure you have coverage to bring your home to current code. Check to see what the cost per square foot is for rebuilding. In the Bay Area you can easily be at $800+ a square to rebuild. Remember, insurance companies use averages. And the cost to build in Redding or Bakersfield is different than Half Moon Bay, Burlingame or Redwood City. We have some great local agents if you need a referral.