Canyon Park Villas rate went from $47K for $50M to $600K for $10M. In one year. Just wow.
A condo association in San Marcos had their bill go from $40K to $900K.
Maybe those rate changes are just locations that border open space, but if those increases are more broadly typical and not outliers, that is going to change the lay of the land quite drastically.
They pay $375 now. The $2500 extra spread over 12 months is an extra $208. So next year they will pay around $600 per month in HOA. That feels high but i don’t know how much other places charge.
They are situated right beside Penasquitos Canyon, which to my mind will one day get hit pretty badly by a fire.
Except that extra $208 a month only buys them 1/5 of the insurance they had before. So either they were over-insuring before or they are under-insuring now.
Multiply that 208 by 5 and the number gets ugly fast.
Hopefully $50M in insurance won’t cost them 5 times what $10M costs.
Insurance in general has gone up because underwriters are pulling out of CA. A lot of SFH in fire zones are not getting renewal notices and those folks are finding it problematic to get another carrier to insure them.
In general , Allstate doubled my rental and primary insurance, so I went to Costco who subcontracts it to Foremost( a Farmers subsidiary) that basically gave me a rate similar to Allstate before they jacked it up.
for my primary, my insurance broker found me a policy with American Modern for much less
My OB rentals all have very cheap insurance. E.g. ~800 a year on a 2000sf wood SFH.
Going from 50k to 500k of car insurance only increases the cost by about double, not 10-fold.
A RP condo might be worth 900k but have replacement cost of 300k with the other 600k the land value and development right.
So I think the 50m was cheap excess insurance which they decided to drop in the context of a drastic increase in the meat of the policy, which is replacement value in a fire.
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