Hello, I'm Jenny Thompson a Santa Cruz based realtor with David Lyng. My 20 plus years of experience in luxury real estate, from designing, building and investing in coastal homes, to my solid career in sales and negotiations, supply my clients with the wisdom and direction needed to navigate the complex waters of real estate, to successfully get them to where they want to go.
Given last years wildfires in Santa Cruz county, the topic is critical for any homeowner in the area.
With the recent increase of wildfires here in our area, it's made both the cost and availability of fire insurance difficult to obtain for many homeowners. As we’re already into summer fire season, there is no better time for addressing this. A new law is about to change the requirements for insurability that will affect previously un-insurable properties. I also want to emphasize the reasons new homeowners should check the insurability of a new property early in the process.
Many homeowners in the state are unaware how the new Defensible Space Compliance law coming into effect July 1st may make their previously un-insurable property now qualify for coverage. This is very good news for a lot of people. Prior to this law’s enactment many homes were deemed un-insurable simply because of their zip code. If your zip code stated your city was located adjacent to wilderness or is in a high severity zone, the specificities of your property’s location were previously ignored.
Under this law, a simple maintained embankment, a golf course or a park, or anything else that creates a “buffer zone” of 100' feet between your house and plants or other combustible materials, may make all the difference in terms of insurability. Perhaps your choice of buying on or near a golf course will pay off for you again.
For prospective homeowners, you must begin researching the cost and availability of fire insurance... before submitting an offer. Similar to investigating loan terms and rates this is your responsibility. If the investigation contingency is waived, you cannot cancel because the property doesn’t qualify for this insurance.
Similarly, even if the contingency isn’t waived, and the buyer fails to acquire fire insurance, the lender’s failure to loan wouldn’t justify exercising the contingency. So now you are in contract, and could be at risk of losing your good faith deposit.
There’s more detail to the Defensible Space Compliance Law, I can introduce to you an insurance expert, so contact me today.
If you have a property in question, and need a real estate agent to guide you through the process, I am happy to assist you as your coastal living expert from the valley to the sea!
Thanks for watching and reach out to me below.
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