Featured on ABC News 10 in a story about potential difficulties getting homeowners insurance during real estate transactions...

Yesterday I was interviewed for an ABC 10 news story about potential difficulties getting homeowners insurance during real estate transactions...you can watch the news story here. spoiler alert: yes you can usually get a new homeowners insurance policy with relative ease in most Sacramento neighborhoods. BUT where things start to get dicey depends on your location, potentially on your claims history, the condition of the home, and if your home is located near a wildland-urban interface. When I am meeting with home buyers and home sellers, there are a few things I ask, or remain on the look-out for:

• Are there recent insurance claims on the property? If the answer is YES, then that scenario may require extra due diligence...no matter how small or benign the claim may have been, this could pose an issue for the next home-buyer when they are shopping for an insurance. Was it a claim related to an electrical issue? Plumbing? The roof? If you are selling a home and you have had an insurance claim in the last 5ish years, please dig up as much documentation as possible as to how the issue was resolved. The buyer's insurance company will likely want to see this. AND you might want to take the proactive step of getting a new homeowners insurance policy quote up front for your buyer.
• Are there trees encroaching on the structures? If the answer is YES, it may be advisable to get these trimmed as soon as possible. If you are a seller, you may want to have foliage trimmed away from the structure before you list the home. If you are a buyer, you may want to ask the seller to trim foliage, or alternatively you may want to do this shortly after closing. While this may not prevent you from obtaining an insurance policy, it may result in a policy cancellation or a non-renewal.
• Do you have a wood shake roof, or a super old composition roof? If the answer is YES, it may be advisable to replace your roof. If you are a seller, you may want to perform roof maintenance or obtain roof replacement bids before you list the home. You can use these as disclosures, and then IF it becomes necessary to replace the roof as a condition of issuing an insurance policy, you will not have to scramble when you are under the pressure of timelines. If you are a buyer, you may want to get your own roof replacement bids for budgeting purposes, or alternatively you may want to plan to replace the roof shortly after closing. While this may not prevent you from obtaining an insurance policy, it may also result in a policy cancellation or a non-renewal. 
• Do you have a Zinsco main electrical panel? If the answer is YES, it may be advisable to replace your main panel. If you are a seller, you may want to have a licensed electrical contractor inspect your panel, or obtain main panel replacement bids before you list the home. You can use these as disclosures, and then IF it becomes necessary to replace the panel as a condition of issuing an insurance policy, you will not have to scramble when you are under the pressure of timelines -- though I will say that the timeline from obtaining a permit to actual replacement usually takes about 45 days as SMUD (or Roseville Electric, or PG&E, depending on where you are) has to visit the house to approve the configuration. If you are a buyer, you may want to get your own panel replacement bids for budgeting purposes, or alternatively you may want to plan to replace the panel sometime after closing. While this may not prevent you from obtaining an insurance policy, it may also result in a policy cancellation or a non-renewal. 
• Do you have old plumbing? If the answer is YES, I'm not sure I would suggest proactively doing anything, unless you have a burning desire to upgrade or replace all of the pipe and fixtures in your home!...however I've had multiple instances over the last year or so where the insurance company required installing a "Leak Detection Device" to the main water meter within a certain timeframe after closing in order to keep the insurance policy. The device itself ranges from $500 - $800, and installation expenses vary with the location of the water meter, if there is already a power source nearby, etc.
• Is your home super old? If the answer is YES, being old by itself is not necessarily an issue unless you have a brick foundation. Brick foundations may require retrofit before they can be insured. Or if your home is not bolted to its foundation...which may sound completely nuts -- why would a home not be bolted to its foundation? Folks, I have seen some things...you may be required to install a gas shut-off device. 
• Are you in a high fire hazard area? If the answer is YES, you probably have already had to deal with clearing defensible space around your home, or the threat of non-renewal or cancellation, or the California Fair Plan insurance program...your buyer will face the same challenges.

SO! Working with a trusted real estate agent to help you identify these issues and navigate them is key. If you are buying a home, start shopping for your homeowners insurance policy on day one. If you are selling a home, just be aware that these issues are becoming more common and it may be necessary to retrofit your home in order for your buyer to get a new insurance policy -- or better yet you could be proactive in doing some preventative maintenance or repairs to ensure your home is eligible for a policy with good and affordable coverage. I have some great tradespeople I can refer for all of these things if needed.

Got questions? I am here to help. Do not hesitate to reach out to me at 916-342-1372.