What should I know about homeowners insurance in the Bay Area?

by Alessandra Imanabadi

By Alessandra Imanabadi · Nationwide Fine Homes

Investigate availability and the complete premium early enough to influence your buying decision.

A beautiful home can feel very different when the insurance cost is added to the payment—or when the expected coverage is not available on the terms you assumed.

Ask about the actual property

Have an insurance professional review the address, roof, construction, systems and relevant risk information. A neighboring home’s premium is not a quote for yours. Ask the seller about prior claims and obtain available documentation rather than relying on a general statement that the property has been insured before.

Understand what a proposed policy covers

If ordinary-market coverage is unavailable, the FAIR Plan may be an option. It provides more limited coverage than a typical comprehensive homeowners policy; a separate difference-in-conditions policy may be appropriate. Compare the combined cost, exclusions and deductibles, not just one premium.

Standard homeowners coverage generally does not include earthquake or flood damage. Those are separate questions for the insurance professional.

Connect insurance to financing before committing

The lender may have coverage requirements. Understand the quote’s assumptions and what still has to be completed to issue the policy. An early indication is useful, but it is not the same as bound coverage.

Your agent should help bring the property, lender and insurance professional into the conversation before a preventable surprise controls the purchase.

I would be pleased to explain how I coordinate that preparation. You can decide whether the home and the full cost of ownership feel right before moving further.