Obtaining insurance has been a hot topic lately. On a recent home tour, my buyer was looking at properties in regards to defensible space and general fire safety. That was a first for me, but he had just received a notice of non-renewal on his property in Placer County. Subsequently, I met buyers at two different listings looking to relocate to Carmel from Thousand Oaks and Malibu.

Between fire, floods and mudslides, insurance rates throughout California are on the rise. Even prior to the Woolsey and Camp fires, I had two closings last summer where the buyers had a particularly difficult time obtaining homeowners insurance. Rates quoted to buyers were considerably higher than what the current owners had been paying. 

According to Mike Kelly, owner of Michael B Kelly Insurance Services in Monterey, obtaining insurance is not a problem. But the process can be more difficult and costly than years prior. He went on to say, "We are seeing some carriers really tightening up on their brush clearance requirements.  They are sending out inspection teams at a much more rapid pace than I have ever seen.  I have not seen the carriers flat out decline to renew, but they have said they will non-renew if the inspection requirements are not met. As for new business, some carriers are declining to quote and others are surprisingly quoting on homes where others have declined to do so." His recommendation is to "uncover every stone." You may have to go through 5-7 insurance companies until you get the policy you want. Ultimately you're going to find coverage, although it may be more expensive for the next year or two, the market will eventually soften and then you can turn to a less expensive policy. 

If you are in escrow for a property, it is imperative to understand your homeowners insurance options prior to removing contingencies. I have even starting drafting some offers contingent on the buyer's ability to obtain homeowners insurance at a reasonable rate. During your contingency period, it's also important to review the natural hazards disclosure which shows if you're in a high fire, flood or earthquake zone. You can click here to access Monterey County's geographic information site. Click on the blue box entitled "Maps" and then "Fire Protection" which displays Wildland Urban Interface (WUI) zones and Fire Hazard Severity Zones within Monterey County.

In closing, buyers within Monterey County should feel confident that they will have options when it comes to homeowners insurance but as always, stay informed. If you do have further questions, feel to contact me or Mike Kelly, Michael B. Kelly Insurance Services (831-624-6065, mike@mkisi.com). 

And while it's hard to imagine a fire during the winter rains, it's always good to be prepared. Cal-Fire has a great fire prevention checklist on their website you can access by clicking here.