CA’s Homeowners Insurance problems persist – with no solutions in sight. 

    So, if you’re in Texas, you should be really happy you’re in Texas (as long as you don’t notice the 100-degree temperatures and 60% humidity – and it never ceases to amaze me how many Texans don’t seem to notice, even though it sort of feels like we all live in a bowl of soup 😊).

    If you’re in CA though – this is another huge reminder to shop for homeowners insurance ASAP – particularly if you promised your seller a fast close! 

    In this NREP VIDEO – Insurance Carriers Are In Peril – a local broker explains what the problems are and says that it can take up to two weeks to find insurance coverage for buyers.  

    I also wrote a blog about the insurance issue last month, and I included the names of several brokers who can still find coverage for buyers.

    Here is that blog: California’s Homeowner’s Insurance Debacle Explained.

    TLDR: Insurance brokers blame California’s insurance regulators (with no industry experience) for not allowing insurance carriers to charge enough money to make a profit – even forcing companies to issue refunds in some cases. And the insurance regulators blame climate change and everything but themselves. The sad part, once again, is that well-intentioned government actions are hurting consumers by eliminating competition and pushing up prices.

    Also, the above linked video reminds borrowers that they are much more likely to get a better homeowners policy if they bundle all of their insurance with a carrier offering homeowners insurance still.

    What Constitutes a Bedroom

    We have had a few questions lately about bedrooms again, so I thought I’d link to this popular blog I wrote a few years ago: Bedroom Counts And Home Values – A Very Big Deal!

    Here is a short summary: A bedroom needs (1) to have its own entrance to the main dwelling, e.g. a room accessible only from the master bedroom can’t be a bedroom; (2) to have 7-foot ceilings for the most part; and (3) to be at least 70 square feet with no side smaller than 7 feet. Bedrooms do NOT need to have closets though – something most of us mistakenly believe.

    In addition, appraisers tend to make large adjustments when comparing similar-sized 2-bedroom homes to 3-bedroom homes, but not so much when comparing 3-bedroom homes to 4-bedroom homes, and especially not when comparing 4-bedroom homes to 5-bedroom homes. It depends on the neighborhood of course.


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