When you’re setting out to purchase a Santa Clarita home and learn that it’s in a Fire Zone, you may be unable to get affordable home insurance – in fact many carriers won’t be able to help you. Most likely they will recommend the California Fair Plan for your home insurance needs. The kicker? It’s super expensive right now and won’t likely provide all the coverage you really would like and or need for your home. The solution to that is apparently doing an additional insurance wrap** around the CA Fair Plan, which only adds even more cost to your annual hazard insurance premium. ** I am not an insurance agent, ask me for a referral for detailed information and questions you may want answered.
I have a client in escrow to purchase a home in Acton CA right now, and after being rejected by some insurance carriers due to the severe fire zone the property is situated in, my clients received a quote for $6,000 per year for the CA Fair Plan coverage. That’s $500 a month, and likely much too high to keep their loan approval debt to income ratio intact, no less an amount they can even afford.
If you’re considering a home purchase in what may be looked at as a high risk fire zone in the Santa Clarita Valley, you’ll want to look into the cost of getting insurance for the home as soon as you possibly can.
Details in this Ask Robert SCV TV video below:
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