If you’re buying a home in San Diego, securing homeowners insurance should be a top priority. While it may not seem as urgent as securing a mortgage or scheduling inspections, waiting until the last minute can leave you scrambling for coverage—or worse, struggling to find an affordable policy. With rising insurance costs and more restrictive underwriting, planning ahead is essential.
Why Is Homeowners Insurance a Challenge?
San Diego’s real estate market isn’t the only thing that’s competitive—homeowners insurance has become increasingly difficult to obtain in certain areas. Here’s why:
- Wildfire Risk: Many parts of San Diego County, particularly in inland and hillside communities, are considered high-risk for wildfires. Insurers may charge higher premiums, impose strict coverage limitations, or even refuse to offer policies in these zones.
- Rising Costs & Limited Options: Insurance companies have been reassessing risk, leading to higher premiums and fewer carriers offering coverage in certain areas. Some major insurers have even stopped issuing new policies in California.
- Stricter Underwriting: Carriers now require more detailed inspections and may deny coverage based on the home’s condition, age, or construction materials.
Why You Should Start Your Insurance Search Early
- Avoid Delays in Closing
Most lenders require proof of homeowners insurance before finalizing your mortgage. If you wait until the last minute and face difficulties securing a policy, it could delay your closing date—or worse, put your purchase at risk.
- Ensure You Get the Best Rate
Starting early allows you to compare multiple policies and find the best coverage at a reasonable price. Some insurers offer discounts for bundling policies or implementing safety measures like fire-resistant roofing or security systems.
- Explore Backup Options
If private insurers deny coverage, you may need to consider the California FAIR Plan, a state-backed insurance option for high-risk homes. However, this process can take extra time and may require additional coverage to fully protect your investment.
Take Action Now
If you’re buying a home in San Diego, don’t wait until escrow is almost over to look into homeowners insurance. Get quotes early, understand your options, and be prepared for potential challenges. Need recommendations? We’re happy to connect you with trusted local insurance professionals who can guide you through the process.
By planning ahead, you’ll not only secure the right coverage but also gain peace of mind as you move into your new home.