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Old 04-02-2015, 09:02 PM
 
45 posts, read 57,393 times
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Hi,
My husband and I are thinking of SD as a retirement spot. I read of one person who lived in SD County whose homeowner's insurance went up from about $2300 to $7200, because of insurance company changes in policies and recent fires. This person lived not far from the coast, which is supposed to be less fire-prone. What would homeowner's insurance be on an 850k home along the coast? Does one need earthquake insurance as well?
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Old 04-02-2015, 09:25 PM
 
19 posts, read 28,242 times
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Quote:
Originally Posted by modernglobal View Post
Hi,
My husband and I are thinking of SD as a retirement spot. I read of one person who lived in SD County whose homeowner's insurance went up from about $2300 to $7200, because of insurance company changes in policies and recent fires. This person lived not far from the coast, which is supposed to be less fire-prone. What would homeowner's insurance be on an 850k home along the coast? Does one need earthquake insurance as well?
$2000 is definitely very high. I think most homes like that around here are $1000ish or less for insurance. One thing to keep in mind is it may very well be better to carry a high deductible, if you can survive the smaller uninsured claims, because making claims will likely make your rates go up and add insurance claims to your CLUE report, which has to be disclosed to future buyers of your home, and impact the marketability of it negatively.

Before buying a home, you can get a ballpark quote from insurers before you remove your contingencies.

You don't need earthquake insurance to get a mortgage. I actually can't say I know a single person who has it.

You usually can save a lot by getting a combined policy that covers home and auto. Here's a few more tips: Tips for Lowering Homeowner's Insurance Costs | Realtor Magazine
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Old 04-04-2015, 09:42 AM
 
Location: Tijuana Exurbs
4,539 posts, read 12,401,604 times
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There are two areas which have a high fire risk: the back country, and anywhere overlooking a natural canyon. At my last renewal, my policy jumped 13%, and I don't fall into either of those categories. What is occurring, is that after several years of either falling or stagnating (2008 - 2012), construction costs are shooting through the roof. Insurance rates are rising to reflect that.
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Old 04-04-2015, 10:43 AM
 
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My Eastlake house overlooks a canyon, and I was denied home insurance by CSAA. Had to go to an alternate agency and pay about $400 more.
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Old 04-04-2015, 11:58 AM
 
Location: California
10,090 posts, read 42,415,243 times
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I live in the hills of Fallbrook. We are NOT considered to be a fire (hot) zone. We had no trouble insuring our home with USAA and the rates have not increased in the last 3 yrs. we have moved here.
I think the better question is where the $850,000 home on the coast is. Didn't think there was such a thing, unless it is a complete tear down.
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Old 04-04-2015, 12:35 PM
 
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My parents have lived in PQ for nearly 25+ years backing up to a nature (re: High Fire Risk) preserve and they've never had massive issues with Homeowners Insurance and that was WITH their old shingle room BUT they couldn't quality for any lower cost carriers. Once they re-did the windows & put a new roof on their options for carriers definitely opened up
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Old 04-06-2015, 04:56 PM
 
45 posts, read 57,393 times
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Thank you everyone, this is reassuring. Maybe the person I read about was an anomaly.
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Old 04-07-2015, 12:03 PM
 
Location: San Diego
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When we get big fires here it wouldn't really matter because they would declare it a disaster and the Feds step in. Now if there is a fire in your house, different story.
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Old 04-07-2015, 03:47 PM
 
Location: SoCal
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Quote:
Originally Posted by 1AngryTaxPayer View Post
When we get big fires here it wouldn't really matter because they would declare it a disaster and the Feds step in. Now if there is a fire in your house, different story.
Um ... the feds might step in but only to provide emergency housing. Your own insurance will be needed to fix your house. So it matters very much.
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Old 04-07-2015, 06:12 PM
 
Location: San Diego
50,269 posts, read 47,023,439 times
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Originally Posted by oddstray View Post
Um ... the feds might step in but only to provide emergency housing. Your own insurance will be needed to fix your house. So it matters very much.
Sorry, need to make clear:

I'm talking about extra "fire insurance". Existing ins policies should cover. Unless you own your home free and clear you would have that on the loan. If someone paid off their loan and dropped ins then they are stoopid Plus, people need to make sure their policy is up to date. Typically, replacement costs outdo coverage in CA.

Let's just hope we don't have a war

http://www.investopedia.com/terms/f/fire-insurance.asp
A fire insurance policy may contain exclusions based on the cause of the fire, such as not covering fires caused by wars.

I just add this because we had multiple quotes for additional fire insurance and our friend who was an Agent explained it. I could be wrong, not the first time.

Last edited by 1AngryTaxPayer; 04-07-2015 at 06:20 PM..
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