Insurance Strategies
Right now it’s not enough to shop for insurance. You have to hunt for it.
1. Start early- Your client needs insurance in place for a home sale to go through – just like financing. Many insurance companies are writing new policies, but it can take longer when there are fewer companies in the market – or you’re in an area with wildfire risk or selling an older home that hasn’t been updated to modern standards. Remind your clients to do their due diligence by talking with many insurance agents and brokers. A list of agents and brokers in this area can be found at https://www.insurance.ca.gov.
2.Talk to your clients about fixing problems up front - Buying or selling a home is a great time to educate clients about how to lower your insurance bill or make your home more insurable. Some insurance companies will reject a home with an older roof, plumbing, or electrical system. Talk to your clients about doing upgrades before they put the home on the market or building it into the sale price. If you work anywhere there’s wildfire risk, there’s a huge opportunity to educate your clients about safety. The Insurance Commissioner's office created the first-ever wildfire safety discount program called Safer from Wildfires. It’s a 10-step action plan to protecting your home, which for most people is their largest investment. We think a lot about “staging” a house for the photos – what if we also thought about staging it for safety? Unlike rental furniture, those wildfire safety benefits don’t go away after the house is sold. Whenever you upgrade a roof or windows, clear brush, or make safety improvements from the Safer from Wildfires list it can qualify for an insurance discount.
3. Don’t settle for the FAIR Plan - The FAIR Plan will write a policy if nobody else will. It was set up to satisfy the requirements for getting a mortgage. But it is basic coverage at a higher price. The FAIR Plan is meant to be a last resort for insurance, and for some it is the only option. Make sure your clients are scouring the market before settling for the FAIR Plan. And if your clients have any problem getting a FAIR Plan policy on time to close a sale, call the Department of Insurance at (800) 927-4357.
4. And most of all - the Insurance Department needs to hear from you. They can help your clients scour the market for insurance.
