Insurance rate more than double from last year
Member since 2018 · 40 posts · 18 votes
Insurance rate more than double from last year
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesQuote from @Clayton Silva:
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
LOL I would never take insurance from off shore holy cow.. I would not be surprised if banks would not recognize them either.. maybe I dont know enough about insurance.. I guess Loyd's of London is off shore :) but Caribbean carriers not so sure.
My carrier on our master inventory policy just shut off ALL of CA.. I dont currently have any projects going in CA at the moment but I have been looking for a Summer cabin up by Truckee and I suspect insurance will be an issue although I will pay cash but I will still want some coverage.
14 Replies
- Lender · CA · Member since 2018 · 635 posts · 393 votes1y
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Clayton Silva:
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
LOL I would never take insurance from off shore holy cow.. I would not be surprised if banks would not recognize them either.. maybe I dont know enough about insurance.. I guess Loyd's of London is off shore :) but Caribbean carriers not so sure.
My carrier on our master inventory policy just shut off ALL of CA.. I dont currently have any projects going in CA at the moment but I have been looking for a Summer cabin up by Truckee and I suspect insurance will be an issue although I will pay cash but I will still want some coverage. - Lender · CA · Member since 2018 · 635 posts · 393 votes1y
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
LOL I would never take insurance from off shore holy cow.. I would not be surprised if banks would not recognize them either.. maybe I dont know enough about insurance.. I guess Loyd's of London is off shore :) but Caribbean carriers not so sure.
My carrier on our master inventory policy just shut off ALL of CA.. I dont currently have any projects going in CA at the moment but I have been looking for a Summer cabin up by Truckee and I suspect insurance will be an issue although I will pay cash but I will still want some coverage.Yeah, I just did a loan for an investor in the North Tahoe area and the insurance was wild, a lot of that is only going to qualify for Cal FAIR unfortunately due to wildfire risk. Lloyds is offshore and I see them a lot in FL where they have the same issues as we do here in CA.
- Insurance Agent · Member since 2020 · 177 posts · 76 votes1y
Quote from @Suhaib Rehman:
Good day everyone,
I have a rental SFH in the Sacramento, CA area. I got a renewal bill for insurance and it is a little over double the amount i paid last year. There was a jump even last year, but I decided to stay with that insurance provider.
Can you suggest a few good insurance providers that operate in that market?
How effective is it to negotiate the insurance amount with the existing insurance provider?
ThanksSuhaib
There isn't any negotiating on an insurance policy rate. The rates are made by the carrier and that's just what they are. I know of a few options in the area if you want to send me a DM
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Clayton Silva:
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
LOL I would never take insurance from off shore holy cow.. I would not be surprised if banks would not recognize them either.. maybe I dont know enough about insurance.. I guess Loyd's of London is off shore :) but Caribbean carriers not so sure.
My carrier on our master inventory policy just shut off ALL of CA.. I dont currently have any projects going in CA at the moment but I have been looking for a Summer cabin up by Truckee and I suspect insurance will be an issue although I will pay cash but I will still want some coverage.Yeah, I just did a loan for an investor in the North Tahoe area and the insurance was wild, a lot of that is only going to qualify for Cal FAIR unfortunately due to wildfire risk. Lloyds is offshore and I see them a lot in FL where they have the same issues as we do here in CA.
while we are talking about it Cal Fair how much more are they than what had been typical insurance rates ?? - Lender · CA · Member since 2018 · 635 posts · 393 votes1y
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
LOL I would never take insurance from off shore holy cow.. I would not be surprised if banks would not recognize them either.. maybe I dont know enough about insurance.. I guess Loyd's of London is off shore :) but Caribbean carriers not so sure.
My carrier on our master inventory policy just shut off ALL of CA.. I dont currently have any projects going in CA at the moment but I have been looking for a Summer cabin up by Truckee and I suspect insurance will be an issue although I will pay cash but I will still want some coverage.Yeah, I just did a loan for an investor in the North Tahoe area and the insurance was wild, a lot of that is only going to qualify for Cal FAIR unfortunately due to wildfire risk. Lloyds is offshore and I see them a lot in FL where they have the same issues as we do here in CA.
while we are talking about it Cal Fair how much more are they than what had been typical insurance rates ??Good question, they seem to be all over the place depending on the area and I am not an insurance specialist, I think typically 1.5-2x normal rates but I could be off by a bit
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Clayton Silva:
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
LOL I would never take insurance from off shore holy cow.. I would not be surprised if banks would not recognize them either.. maybe I dont know enough about insurance.. I guess Loyd's of London is off shore :) but Caribbean carriers not so sure.
My carrier on our master inventory policy just shut off ALL of CA.. I dont currently have any projects going in CA at the moment but I have been looking for a Summer cabin up by Truckee and I suspect insurance will be an issue although I will pay cash but I will still want some coverage.Yeah, I just did a loan for an investor in the North Tahoe area and the insurance was wild, a lot of that is only going to qualify for Cal FAIR unfortunately due to wildfire risk. Lloyds is offshore and I see them a lot in FL where they have the same issues as we do here in CA.
while we are talking about it Cal Fair how much more are they than what had been typical insurance rates ??Good question, they seem to be all over the place depending on the area and I am not an insurance specialist, I think typically 1.5-2x normal rates but I could be off by a bit
i have been honing in on White Hawk if you know that development and its in the pines but it does have water system with hydrants but volunteer fire department .. But having a 1 mil plus home with no insurance seems a tad risky given the wild fire situation. I started my Career in Lake County Ca. and half that county burned down over the last 10 years.. probably 2k homes got destroyed so not as epic as say the fires in Napa and Sonoma.
This area of Tahoe and north though has had massive fires last few years but its so remote very few structures actually burnned. - Lender · CA · Member since 2018 · 635 posts · 393 votes1y
I am familiar with the area, happy to help in anyway I can, a lot of stuff like insurance or tertiary questions I can probably get you plugged in with someone more knowledgeable on those things. I tend to stay in my lending and financing lane lol
- Member since 2018 · 40 posts · 18 votes1y
Quote from @Clayton Silva:
I am familiar with the area, happy to help in anyway I can, a lot of stuff like insurance or tertiary questions I can probably get you plugged in with someone more knowledgeable on those things. I tend to stay in my lending and financing lane lol
Hi Clayton
Many thanks for the kind offer,
Since this is a rental property, my living home insurance(which is way less even though my living home is value about twice the rental property) does not cover landlord insurance.
- 1yDan H.Pro MemberInvestor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
LOL I would never take insurance from off shore holy cow.. I would not be surprised if banks would not recognize them either.. maybe I dont know enough about insurance.. I guess Loyd's of London is off shore :) but Caribbean carriers not so sure.
My carrier on our master inventory policy just shut off ALL of CA.. I dont currently have any projects going in CA at the moment but I have been looking for a Summer cabin up by Truckee and I suspect insurance will be an issue although I will pay cash but I will still want some coverage.Yeah, I just did a loan for an investor in the North Tahoe area and the insurance was wild, a lot of that is only going to qualify for Cal FAIR unfortunately due to wildfire risk. Lloyds is offshore and I see them a lot in FL where they have the same issues as we do here in CA.
while we are talking about it Cal Fair how much more are they than what had been typical insurance rates ??luxury cabin, 3100', 4/3/1, nice finishes including spa and sauna, in high fire risk area with total property value ~$500k with CA FAIR was just over $5K fire only. My quote expires in 2 days but we have run into a hiccup closing. If the issues can be resolved, I will need to get another quote but this should give an idea of the CA FAIR.
Does not get more current as this quote was from just after the LA fires. their max quote period is 30 days so seems the quote was from Jan 13.
It is not cheap, but the risk it high. A fire could be unstopable there. The time to get a large ground suppression there is extensive (it is ~45 minutes from a decent size town). When I consider the risk and the rebuilding costs, I am surprised the insurance is not even higher price.
We got a referal for our CA FAIR agent from the RE agent and they were real responsive. PM me if you want the contact (they deserve some business for their great support, but if I do not close I have no need for the insurance).
Good luck
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Dan H.:
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Quote from @Jay Hinrichs:
Quote from @Clayton Silva:
Definitely helps to get quotes from a few places, problem is that options are shrinking as more carriers leave the state of CA. A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.
LOL I would never take insurance from off shore holy cow.. I would not be surprised if banks would not recognize them either.. maybe I dont know enough about insurance.. I guess Loyd's of London is off shore :) but Caribbean carriers not so sure.
My carrier on our master inventory policy just shut off ALL of CA.. I dont currently have any projects going in CA at the moment but I have been looking for a Summer cabin up by Truckee and I suspect insurance will be an issue although I will pay cash but I will still want some coverage.Yeah, I just did a loan for an investor in the North Tahoe area and the insurance was wild, a lot of that is only going to qualify for Cal FAIR unfortunately due to wildfire risk. Lloyds is offshore and I see them a lot in FL where they have the same issues as we do here in CA.
while we are talking about it Cal Fair how much more are they than what had been typical insurance rates ??luxury cabin, 3100', 4/3/1, nice finishes including spa and sauna, in high fire risk area with total property value ~$500k with CA FAIR was just over $5K fire only. My quote expires in 2 days but we have run into a hiccup closing. If the issues can be resolved, I will need to get another quote but this should give an idea of the CA FAIR.
Does not get more current as this quote was from just after the LA fires. their max quote period is 30 days so seems the quote was from Jan 13.
It is not cheap, but the risk it high. A fire could be unstopable there. The time to get a large ground suppression there is extensive (it is ~45 minutes from a decent size town). When I consider the risk and the rebuilding costs, I am surprised the insurance is not even higher price.
We got a referal for our CA FAIR agent from the RE agent and they were real responsive. PM me if you want the contact (they deserve some business for their great support, but if I do not close I have no need for the insurance).
Good luck
Thanks Dan, where in CA is that property at very good price for what your describing !!! - 1yBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 712 votes
I'm up here in the Tahoe area and have a couple of insurance broker resources. They will be able to reach out to multiple carriers. Your fire risk is lower in Sacramento than in the Tahoe or any wildland urban interface area. Rates will continue to increase as more major disasters happen. The LA fires will drive rates up for everyone and is now a major line item expense. We will write insurance contingencies into home offers in the Tahoe and now even in the Reno, NV area for rentals and primaries. It's just part of property ownership.
- Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes1y
Quote from @Suhaib Rehman:
Good day everyone,
I have a rental SFH in the Sacramento, CA area. I got a renewal bill for insurance and it is a little over double the amount i paid last year. There was a jump even last year, but I decided to stay with that insurance provider.
Can you suggest a few good insurance providers that operate in that market?
How effective is it to negotiate the insurance amount with the existing insurance provider?
ThanksSuhaib
I'd suggest finding a broker, they have alot of knowledge and have your best interests as a goal, insurance agents have their employers best interests as a goal.
Insurance in CA will continue to increase, its lagging in inflation and all the fires are affecting it.
Many homeowners are moving to self insured.
The fair plan is asking for 1 billion in subsidies, purported to be funded by the carriers themselves, I have no doubt Ricardo Lara will make this happen.
- 1yScott ScovilleBusiness MemberReal Estate Agent · Sacramento, CA · Member since 2019 · 497 posts · 272 votes
Quote from @Suhaib Rehman:
Good day everyone,
I have a rental SFH in the Sacramento, CA area. I got a renewal bill for insurance and it is a little over double the amount i paid last year. There was a jump even last year, but I decided to stay with that insurance provider.
Can you suggest a few good insurance providers that operate in that market?
How effective is it to negotiate the insurance amount with the existing insurance provider?
ThanksSuhaib
Hey Suhaib, I use a broker. I have high deductibles, and just insure for liability and total loss. It's not even worth filing claims for small repairs anymore. I'm an investor and agent in Sacramento. Best of luck and don't hesitate to reach out.
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