Insurance kills more California deals than interest rates do, and almost nobody checks it until it is too late.
It surfaces in week three, when you are already emotionally committed and the lender wants proof of cover. A home you cannot insure is a home you cannot finance. That is the whole rule.
So check three things on day one. Whether it sits in a high fire severity zone. Whether cover has been declined at that address before. And what the FAIR Plan would actually cost if it comes to that. Get a quote before you write the offer.
It is not only fire zones. Roof age, past claims on the property and old wiring can all push a premium hard, or make a carrier decline outright. The house does not have to be risky. Its history just has to look risky.
Five minutes with a broker on day one saves a month of wasted escrow.
Insurability decides deals in a lot of markets now, not only California. Find out what makes a property hard to insure where you are and tell me.
Looking at a fire zone property? Send me the address and the word COVER.
The short version
- By then you are emotionally committed.
- And the lender needs proof of cover.
- Is it in a high fire severity zone.
- Has cover been declined here before.
- What the FAIR Plan would actually cost.
- Get a quote before you write the offer, not after.
- The house does not have to be risky. Its history just has to look risky.
Talk it through with Kini
Kini will run it with you on your real budget, anywhere in Orange, Los Angeles, Riverside or San Bernardino County. No charge and no pitch.
Book a consultation or call or text (323) 320-1725. See this month's numbers for your county.