California Homeowners Insurance

My name is Pat Knowd and I am agent principal with - Thousand Oaks Insurance Agency, an independent agency specializing in representing the buyer/insured, NOT the insurance company.

Insuring your home is often a secondary consideration when it comes to the home buying process. It sold not be and here is why.

Any seasoned Realtor will tell you that insurance underwriting issues can rear their ugly head just before closing, throwing a monkey wrench into what all interested parties thought was a smooth transaction.

Too often, the insurance agent or if dealing with a direct company the employee of the insurer, receives the request for evidence of insurance from escrow sometimes literally a few hours before closing. Unless the agent has done the due diligence to inspect the property BEFORE this crucial time, there can be several issues;

1. If a condo or townhouse, new regulations are now mandating a much higher level of building property or dwelling coverage on what most would have considered to be covered by the HOA master policy.

2. Brush - issueing and getting concensus on the limits, deductibles and pricing is easy but if the underwriter has not reviewed a report detailing proximity to brush, the policy may be denied and no evidence of insurance available for your valuable closing.

3. Prior losses. a CLUE report needs to be ordered to discover and adress any prior claims. Often, evidence detailing the claim has been closed and all repairs finished before approval of  new policy can proceed.

4. Dwelling limits - Your lender cannot require you to insure the property for the loan amount or require replacement cost coverage. They will and do require that the policy cover, at a minimum, the replacement valuation which was calculated by your appraiser alongside the market valuation.

Pat Knowd LUTCF
  • September 20 2013 - Thousand Oaks
  • 1Yes

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