Buyers Insurance Information

Buyers Insurance Information

I just attended a class today at our office.  Frank Lewis, from State Farm (who is a local agent here in Auburn), talked to the agents who attended about getting buyers to secure their homeowners insurance early in the escrow process.  This is increasingly important due to tougher underwriting standards affecting our region.

He explained to us that many companies are no longer writing insurance in our area due to the risk known as the “Wildfire Zone”. 

What can your do?????????

• The Buyer needs to contact their insurance company immediately upon acceptance of their offer and be sure to ask if the property is located in that company’s “Wildfire Zone”.
• The Buyer needs to ask their Insurance Agent to submit an application to obtain pre-approval and “Binding Authority” from underwriting.  Not just verbal approval!
• Buyer should ask their Insurance Agent to inspect the property to determine if any of the underwriting requirements need to be met.  This knowledge would be great to have during the inspection period of the contract so they can negotiate with the Seller to fix these required items.

General Checklist for “Wildfire Zone” Insurance Guideline*

Roof:

·        Do all structures have an approved roof? Wood is not an approved roof type!!!

Vegetation:

·        Are structures over 300 feet from any combustible vegetation?

Accessibility:

·        Is the street paved and over 25 feet wide?

·        Is there paved access to all the structures from 2 directions?

·        The property is NOT located in or accessed through a steep, narrow canyon.

Fire Department:

·        Are all structures situated on an approved foundation, and not on cantilevers, stilts or pilings?

·        Are all raised decks kept clear of accumulations of combustible materials?

·        Is the structure visible from a public road with the address clearly post at the driveway entrance and is the driveway able to accommodate emergency vehicles?

* The above list was provided for general information purposes only and depending on underwriting practices may not be an all inclusive list of the requirements.  This list is here to help buyers be proactive in determining potential “Red Flags” that may render their desired property uninsurable.

Don and Vivienne Rolfe, Keller Williams Realty, Masters Club 2008,  Agent Leadership Council, CARE  Board of Directors, Chair and member-Placer County Association of Realtors Housing Opportunity Committee and Leadership Committee.