Fighting Fire with Insurance

Insurance companies are shying away from new policies in California and raising rates on existing customers after years of wildfires have devastated their bottom line. How can you keep your current plan or find a new policy that fits your budget?

CHIC (Pearl)

If your insurance company tells you they’re not renewing your policy, don’t panic! You’re entitled to 45 days notice before the policy expires, which gives you time to shop around for a replacement policy or renegotiate with your current provider. If you don’t receive proper notice, don’t hesitate! Call the California Department of Insurance (DOI) at 1-800-927-HELP or go online to insurance.ca.gov and check to see if your policy has a guaranteed renewal provision. And if you think you’re out of options, you’re not. Call the California FAIR Plan at 1-800-339-4099. FAIR warning: This policy can be expensive, and it only covers certain losses, so you may need to buy Differences in Conditions (DIC) insurance too.

GEEK (Kevin)

Who wants to spend all day and night and part of the weekend filling out forms and running themself ragged with research? Okay, some of us love this kind of stuff. But for the rest of us, I recommend getting an insurance agent. The DOI website offers a tool to help you find an agent or broker near you, as well as other resources. Before you decide on an agent, check to see if they work exclusively with one insurance company or have access to multiple carriers so you know you’re getting the best deal. And come prepared with questions for your agent such as: What is covered and what is not? Can I get the full cost to rebuild if disaster strikes? Does it cover demo or debris removal? Is there a coverage limit?

On the Road: San Diego

Recently, we took a road trip to San Diego to visit some sister Compass offices and get a feel for the diverse neighborhoods that make up this exciting city. There’s no shortage of beautiful beaches, walkable villages, and vibrant nightlife. Here’s a quick look at a few of our favorites.

Del Mar

Just 20 miles up the coast from San Diego proper, Del Mar is a cute seaside village with a small-town vibe, boutique shopping, fabulous food, and inviting beaches! And for the kids, it’s also home to the San Diego County Fair! This used to be where movie stars would come to take a break from Hollywood. It could be the perfect fit for you and your family.

Mission Valley

A few minutes’ drive from Downtown, the world-famous San Diego Zoo, and SeaWorld, Mission Valley and Old Town are home to restaurants, cantinas, galleries, and theaters that showcase the rich and diverse history of the city. There are also plenty of shopping options, and the schools are among the top-rated in the nation. Enjoy a margarita while listening to street music in the summer sun.

La Jolla

La Jolla (pronounced la HOY-uh) is 20 minutes north of Downtown and an absolute jewel of the Southern California coastline. Surrounded by the ocean on three sides, with white sand beaches and cliffs, it’s easy to feel like you’ve been transported to the Mediterranean! This sophisticated enclave is only becoming more popular, so get in while you can!

Downtown

Downtown is the heart of the city, and the pulse is getting louder every day. From the historic Gaslamp Quarter to Petco Park to fine dining and walkable commutes, this is the place to be for anyone who wants an urban living experience. You are literally 20 minutes from anywhere via foot, bike, bus, or train. Cars are entirely optional, and family outings are encouraged. Want to see more?

Whose side are you on?

When it comes to first impressions, siding is one of the most important elements of your home. And these days, you have plenty of options to choose from, so don’t get stuck on just brick and wood. Try something fun — and functional — to freshen up your frontage.

CHIC (Pearl)

We recently saw a home with a new face of fiber cement. This material has the log-lasting durability you need in the Bay Area, where we get all kinds of weather — even sleet and snow. When you add a sleek aesthetic and resistance to persistent wildfires, this is one investment that will pay you back whether you’re staying or selling.

GEEK (Kevin)

Taking things down to the studs? Use this opportunity to install steel siding. It won’t melt in the sun or crack in the cold, and it’s resistant to moisture that can lead to mold, mildew, and wood rot. And unlike traditional siding, it doesn’t need recaulking or repainting down the road. All this will save you big bucks on maintenance!

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!

The True Costs of Moving

Selling your first home and purchasing your next one can seem like an insurmountable process when you’re in the thick of it. That’s why it’s important to plan ahead before the madness begins. The first step is understanding the costs beyond the listing price.

CHIC (Pearl)

Before you commit to listing your current home, it’s a good idea to ask your agent for an estimate of all the closing costs involved. A roll call of the usual suspects includes real estate commissions, advertising, legal and professional fees, excise taxes, capital gains taxes, prorated property taxes and HOA fees, and typically surveys, inspections, etc. You’ll need to put a number to all of these items to get a full picture of your options for buying a new home, which comes with its own set of peripheral expenses.

GEEK (Kevin)

So what are some of the costs you need to consider as a buyer? To name just a few: down payment, lending fees, title fees, insurance, inspections (if the seller isn’t paying), professional cleaning, repairs and cosmetic upgrades, utility deposits, and more. We also suggest getting pre-approved for a new home loan before you do anything else, and while you’re at it, make sure to include the costs for any renovations you may want to make. Oh, and did we mention moving expenses? It adds up quick!