Insurance companies in California have stopped covering tens of thousands of homeowners in areas devastated by wildfires, even though the homeowners want to remain insured. This has led to skyrocketing homeowners’ insurance prices in California, especially for those who live in homeowners’ associations like condos. The amount of non-renewed policies could prompt changes in how insurers operate in the Golden State. Beginning January 1, 2023, Californians will benefit from newly created consumer protections as 11 new state laws sponsored by Insurance Commissioner Ricardo Lara take effect.
Homeowner and property insurance terms, conditions, and pricing are continuing to change. Despite the increase in mortgage interest rates, properties in California are still generally in high demand as proven in 2023. In the meantime, for home purchases, it is important for each homebuyer to obtain a Homeowner Insurance binder once enter escrow. The process and time it takes to obtain a binder now is much longer than before; especially in higher wildfire zones.
There is a stricter process for properties that have recently filed or have filed multiple homeowner insurance claims in the past. Depending on where you are purchasing the property, as an insurance agent, we will need to submit homeowner insurance requests to several insurers for coverage. Not all insurers are willing to insure properties in all locations. Most of them have preferences of where they would or would not insure. Therefore, homebuyers must be serious about purchasing a certain property in the first place while submitting for a homeowner insurance binder to avoid delays in the escrow and lending process.
Please visit Affluentopia Home Insurance page for more details.
Alisha has experience with the changing insurance environment for property buyers in various counties. Contact us today to obtain a homeowner insurance binder for your dream home and/or investment properties!
