In the East Bay’s real estate market, a new factor has emerged that is affecting affordability of homeownership. It’s not the usual suspects of home prices and interest rates. Insurance premiums are rising and with several major insurers no longer writing in California, getting insurance is not as simple as it used to be!
Homeowners rates have soared and at least one insurer’s rates are predicted to rise another 20% in 2024. Despite initiatives like California's Fair Access to Insurance Requirements Plan (Fair Plan), the sticker shock of insurance premiums has caused frustration for homeowners and would-be homeowners alike. I can help!
Why are Rates Rising?
Severe weather events, a growing concern in the San Francisco East Bay and California, significantly contribute to the rising trajectory of insurance premiums. Properties susceptible to flooding, wind damage, and wildfires are witnessing increased insurance costs. However, the increases are affecting homeowners statewide, regardless of susceptibility to these issues.
How Does This Affect Buyers?
Many would-be homeowners are finding it difficult to secure insurance within their budgets and are falling out of contract on their dream homes.
To effectively navigate these challenges, it becomes imperative for both buyers and sellers to factor in insurance costs at the onset of the home buying process. Proactively addressing this aspect and seeking affordable, comprehensive coverage can help mitigate the impact of rising insurance rates and make escrow smoother.
The Market Remains Strong
Interestingly, despite the hurdles posed by escalating insurance costs, home sales in the San Francisco East Bay are strong. This suggests that, despite the financial implications, residents of our area remain eager to invest in homeownership.
I Can Help!
I have a great relationship with insurance brokers who collaborating with multiple insurance companies. Shopping for insurance prior to submitting an offer can streamline the process, making an offer stronger and less likely to fall out of escrow.
Call me today and I'll connect you with my trusted broker! 925-200-2126
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