Weighing Risk vs. Reward

In case you missed it, home insurance plays a crucial role in the buying and selling process, especially in areas prone to natural disasters. We can help you understand the financial and other implications on both sides of the process, especially as insurance companies reconsider their policies in high-risk areas.

CHIC (Pearl)

Buyers should use risk assessment as their North Star. You might reconsider purchasing an otherwise wonderful home in an area frequently affected by natural disasters due to the high risk of damage or destruction in a constantly changing environment. A lot of the decision will come down to the cost and availability of insurance. Lenders typically require home insurance as a condition of your mortgage, and if you can’t get a policy, you may not get the loan. It’s a difficult balance, so you’ll need to be committed to the process if you want to make it work.

GEEK (Kevin)

Risk mitigation is the name of the game for sellers. Changes in insurance policies and regulations can have long-term effects on the desirability and value of properties in high-risk areas prone to disasters like wildfires and earthquakes. On top of that, you may be required to disclose past insurance claims related to natural disasters, which might sour buyers on the property. You can help tip the scales by bringing your home’s safety measures up to date, but that may not create the nexus point you need between buyer interest and selling challenges.

Uninsurable?

As building costs, fraud, and risk from wildfires and other climate disasters continue to rise, some insurance companies are backing away from issuing new homeowner policies in the Golden State. What does this mean for potential buyers and sellers?

CHIC (Pearl)

If you’re thinking of buying a home in California, you should get a head start on finding a home insurer who will give you a good policy at an affordable rate before making an offer. Understanding your annual expenses is a key factor in determining how high you’re willing to go.

GEEK (Kevin)

Insurance companies aren’t nonprofits, and they’re not stupid either. They already know the risks of insuring properties in earthquake country, and the recent trend of wildfires hasn’t made the equation any more favorable to them. In other words, don’t hate the player, Hate the game!

Supporting Earthquake Victims

It’s never too late to give what you can to help relief efforts following the devastating earthquake in Turkey and Syria. Please consider these organizations with your donations.

Chic vs. Geek: Preparing for Disaster

Most homeowners don’t think about tragedies like tornados, wildfires, and floods until it’s too late. But Californians have learned to prepare for the worst.

CHIC (PEARL)

When you live in a region that literally moves and shakes with unpredictable regularity, you owe it to yourself to invest in earthquake insurance. The California Earthquake Authority (CEA) is a reliable resource with a variety of options for owners of single-family homes, condos, and RVs. They also offer policies to protect renters..

GEEK (KEVIN)

You can pay for all the insurance you want, but if you truly want to protect your home and the loved ones inside from the next “big one”, you should consider a full seismic retrofit. Visit the CEA website to learn about the most common hazards and vulnerabilities and how to find a good contractor to help make your home more resilient.