Property Overview: U – For Unexpected Discoveries

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In real estate, we try to anticipate everything that might affect a deal. The best way to prevent any unexpected discovery is for the seller to fully disclose everything they know about the property, which can affect its value and attractiveness. As I mentioned recently, vendor disclosure is one of the keys to a smooth transaction. There are also reports that sellers provide to buyers that provide information from third parties that adds a level of disclosure that the seller would not necessarily know himself. Reports such as the Natural Hazard Notice and the Preliminary Title Report provide the buyer with invaluable information.

The Natural Hazards Report discloses information based on the location of the facility. The report reveals six main hazardous areas. Two of them are related to flood zones. If the homes are in one of these two zones, the chances are high that the lender will require additional flood insurance. The other two zones are classified as hazardous fire zones. Unfortunately, nearly all Fallbrook and Bonsall fall into one or both of these zones.

The other two zones are related to the zones of seismic activity. Fault zones in California have been mapped so properties within the identified fault zone will be recognized in the report. Seismic hazard, a more general area, is not fully mapped. I always thought that once they completed this map, all objects would be in a seismic hazard zone, so I believe that this map will never be completed.

Imagine if every home in California was earthquake-proof? The cost is high, the deductible is high, and the insurance coverage is low. Compulsory earthquake insurance adds another expense to the already high cost of owning a home.

When it comes to insurance, all three of these specific hazardous areas pose problems. Flood insurance can be found and purchased as additional coverage. Earthquake insurance can be found and purchased as additional coverage. Fire insurance is becoming more and more difficult due to the number of recent fires across the state that have wiped out entire communities. This new California home buying challenge became very real to me last week.

We’ve had the same company with the same coverage for almost 10 years. We have never filed a claim. We have molded cornices at home, which means there is no exposed timber at all. We have a freestanding three car garage with the same design, which keeps all combustible materials away from the main house. We have micrometal mesh vents in the attic and metal mesh covers on the gutters. We clear our land so that there is no bush, and we completely irrigate everything around the buildings. We even have a pool with a pump for a backup water source. But our insurance company is leaving California in 2022, so we’ll have to look for new insurance. This is an unexpected discovery.

I contacted our insurance company who told me that currently all major insurance companies are leaving California in 2022. If this does not change, everyone who buys a home will remain in one of two “fire zones”. will likely end up acquiring the California Fair Plan. Look at this guys. The plan for holding fairs in California is not at all fair. For most homeowners, prices would double or triple.

The Fair Plan Residential Fire Policy is a proprietary risk protection policy that only covers damage caused by the specific causes of loss listed in the policy, including fire and lightning, internal explosion and smoke. Additional additional coverage will need to be purchased in the event of vandalism, malicious harm and liability. It also only applies to buildings, not your personal property.

So, I want you to be aware of what is potentially happening with insurance. In each of these hazardous areas, the homeowner will have to purchase two types of insurance. In the case of homes in flood zones, the owner will need to purchase homeowners insurance for their primary coverage and flood insurance as an add-on.

In earthquake zones, homeowners will be required to purchase additional primary and earthquake coverage. And now that fire is getting more and more, sorry for the pun, problem, homeowners in certain fire hazard areas will have to face the challenge of acquiring fire insurance under the Cal Fair Plan and additional policies for vandalism, malicious harm, liability, and insurance coverage. for causing harm to personal property.

As property owners, you must do your best to provide complete information to avoid unexpected discoveries. Add to your list the fact that insurance is the next big surprise. If you are planning to sell your home, make sure you work with a professional, experienced realtor who can help the co-buyer realtor find insurance for the buyer. Without insurance, any purchase involving a mortgage will not be able to close the escrow. Even cash buyers would be overlooked if they believed they could insure themselves. This could be the biggest and most unexpected discovery we have encountered in the residential real estate industry. Now you know, so this shouldn’t come as a surprise.

Kim Murphy can be contacted at [email protected] or 760-415-9292 or 130 N Main Avenue, Fallbrook. Her brokerage license is # 01229921 and she sits on the board of directors of the California Association of Realtors.

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