For most of our careers, homeowners insurance was relatively affordable and readily available. Claims filed within the previous five years could create complications in obtaining coverage, but even those were usually manageable. That era is over.
California’s insurance market has undergone a structural shift. Premiums have risen sharply, several major carriers have pulled back from writing new policies, and availability can now vary among similarly situated neighborhoods, or even from one street to another. While a few carriers may slowly return under new state rules, the market is still adjusting and options are limited.
What We Do Differently Now
We connect buyers with insurance brokers before the home search begins, so this resource is already in place when it's needed. When we write offers, we include a separate insurance contingency, giving buyers time to confirm coverage availability before they're fully committed to the purchase. Once escrow opens, our clients are encouraged to secure coverage right away, well ahead of the contingency deadline.
That makes insurance availability a question answered early rather than a surprise discovered late. Since the market changed, insurance has not caused one of our buyers to lose a transaction. That is not because the issue disappeared, we simply front-load the research and acquisition sequence.
For Buyers
Ask what the current owner pays and which company writes the policy. An actively insured home provides a starting point for understanding what coverage may still be available at that address and at what cost, although the seller’s policy and premium may not be offered to the new owner.
Work with brokers who have access to multiple carriers. One company’s refusal to insure a property does not necessarily mean coverage is unavailable. It may simply mean another carrier or policy structure is needed.
Most importantly, confirm the availability and cost of insurance before removing the protections in your contract. An insurance contingency preserves the buyer’s ability to step away if suitable coverage cannot be secured.
For Sellers
Buyers are asking about insurance earlier, so sellers should know their current policy and, if possible, the approximate age of key systems in their home before the question comes up. That includes key systems like the roof, electrical panel, plumbing, and heating, along with whether the home has a central fire or burglar alarm. Having this information ready can help move the insurance process along for the buyer, and confirming whether your carrier is still writing policies in your area gives you a head start seeking other sources if it is not.
Mitigation ("fire hardening”) can also help if your home is in a high-fire zone. Fire-resistant roofing, ember-resistant vents, defensible-space improvements, and similar upgrades may help reduce premiums or expand coverage options.
A Different Landscape, Not a Different Outcome
The insurance market is certainly more challenging than it used to be. The response is not to ignore the issue or assume the worst. It is to begin sooner.
Your Trusted Advisors,
Peter and Tregg
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