Homeowner insurance challenges

There is a lot of chaos with home buyers finding homeowner insurance options in California now… here is a general outline of what has been provided to insurance agents looking for guidance... 

• Homes with a replacement cost of two million dollars and above are going to be the hardest to place. There are only two carriers actively writing in California (CHUBB AND PURE) and they will require full packages. (Home, auto & umbrella)
  
  
• Homes with a replacement cost of two million dollars and above that are DECLINED by CHUBB/PURE due to location, claims history or lack of updates  will have to be placed with non-admitted carriers such as Lloyd’s of London, Scottsdale, Azguard, Vault etc.
  
  
• Homes with a replacement cost under two million dollars still have more options. We have had success with Safeco, Mercury, Hartford, CIG, American Modern etc.
  
  
• Occupancy status is going to make a huge difference. Carriers are leaving space for primary homes. Secondary homes and investment properties will also likely have to be placed with non-admitted insurance carriers.
  
  
• Homes with lack of updates in hard locations can be placed with the California Fair Plan. California Fair Plan is the insurer of last resort but it IS an option if all other carriers decline.

 
As a proactive measure, we strongly encourage buyers check for insurability before making an offer.

We also encourage seeking insurance coverage indication quotes to include in disclosures on behalf of the sellers. 

Pete Sabine & Leslie Whitney
OurFiveStarTeam.com
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