Realtors and home experts will tell you that Homeowner’s Insurance in San Mateo has continued to rise in recent years to the point in which homeowners are getting very concerned. The concerns are not only the raising rates, but also some new home buyers are facing challenges in finding companies to cover their property to begin with. Sadly, existing homeowners are also seeing policies cancelled after years of rate increases.
So why the sudden increase in property insurance and denials?
Buyer beware: Chinese drywall and other inferior materials. Recently, Consumer Reports has highlighted an issue with faulty Chinese drywall. Bought cheaply, thousands of complaints are stating that the product is not only inferior and likely to fall apart. More serious than that, it is actually a health hazard. Though not widespread, it presents enough of a trend that insurers are covering their bases by excluding it from coverage or raising rates as a preventative measure against possible claims.
Location, location, location – and if your dream home is on a coastal waterway in Montara, be prepared to pay more for your homeowners insurance. What’s more, insurance companies are requiring separate deductibles for coastal property – primary insurance and secondary wind, water or specifically hurricane risk. If you file often, be prepared to go without; frequent claims cause insurers to cancel or not renew.
Lower home prices in Half Moon Bay are also driving rates up and replacement or rebuilding coverage down. Even if the value of your home falls, you still need to shop around for the best price on covering your home in the event of a disaster. Also make sure you have adequate coverage in the event a disaster does occur.
Another factor that can drive rates up on homeowner’s insurance is bad credit scores. If you have a bad credit score, you are considered to be a high risk for responsible behavior and or may have a financial struggle in your future. The high unemployment rates and prices of homes falling, causing poor credit to drive up the rates across insurance plans.
If you aren’t quite sure you understand your current homeowners policy and the coverage you are paying for, be sure to speak to your agent and be sure to shop around. Comparing companies and coverage could pay off in the end. Contact me if you have any questions!
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