I’ve been in contract purchase a property in a very high fire risk rated zone, even though the property is like 2 miles from the ocean. I’ve found that none of the normal insurance companies will insure it, and the only option is California FAIR Plan insurance. I’ve read some horrible reviews about this insurance, and I’m nervous they could cancel and we’d be left without any insurance at all, and then a mortgage fully due and payable. Or worse, no insurance and something actually goes wrong. Thoughts? Any experience with CA Fair Plan?
I have clients in Carlsbad that had to go this route 3 years ago. They got an amazing canyon/ocean view home and figured other options would become available as the impact of those NoCal fires pass over time. I’ll see them Friday night and ask them for an update
Thanks, sdrealtor. I am leaning towards letting this one go as it would be an investment property, so not owner-occupied. I think that is making it even harder to find insurance.
This may be another factor that keeps housing prices strong in cities. Rural and even some suburbs are seeing insurance companies drop polices to cut their risk. I’ve heard anecdotally a few friends with rural homes and even one suburban home having insurance problems.
This has been an issue in Clairemont for a while. If you’re near a canyon, insurance companies are very leery of insuring you. Wawanes2a wouldn’t cover my ex at all as she lived `within 1000 yards of a canyon.
Josh
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