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| March 2026 A quick 5-minute read |
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| Thought About Insurance Lately? |
| Homeowners insurance tends to get attention only after major disasters (like the Palisades fire). Outside of those times, it’s usually top of mind only for homebuyers and Realtors. Nevertheless, it’s a topic that deserves a few minutes of your attention.
A recent visit from our in-house insurance advisor, Alie Lopez with Acrisure, confirmed something we’ve been noticing for a while: insurance companies are becoming increasingly strict about verifying that certain risk factors are not present before issuing or renewing policies (most of which renew annually). Here are some of the key areas currently under scrutiny:
Homes in high fire zones Properties located in high fire-risk areas are seeing higher premiums and, in some cases, policy non-renewals - especially if no wildfire mitigation measures have been taken. In these situations, homeowners may be left with the California FAIR Plan (the insurer of last resort) as their only option for fire coverage, which can be costly. Roof age and materials Wood shake roofs are a major red flag, particularly in fire-prone areas. Additionally, roofs older than 25 years are increasingly difficult to insure. Knob-and-tube wiring and certain electrical panels It’s becoming more challenging to find insurers willing to cover homes with knob-and-tube wiring (our own home had it when we purchased it). Similarly, outdated or historically problematic electrical panels - such as Federal Pacific, Stab-Lok, Zinsco, and Challenger - can lead to denied applications or canceled coverage. Galvanized plumbing This is a newer concern. According to Alie, galvanized pipes can create challenges for securing new policies, especially if the home has a history of water damage claims.
This raises an important question: how do insurers find out about these issues? As Alie explains, “There is always an inspection 30–45 days after closing or issuing a new policy. Inspectors may ask to see the electrical panel and check for any visible or active knob-and-tube wiring.”
The good news is that some insurers may offer a short grace period to address these concerns. While the necessary upgrades can be costly, resolving them can provide long-term peace of mind and the knowledge that these critical home systems should not need replacement again for decades to come. And those pesky insurance headaches get resolved. |
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| | We have access to a tremendous amount of real estate data, most of which is way more current and local than you read in the press. If you want to take a deeper dive into the latest numbers, start here:
San Mateo County Real Estate Report Santa Clara County Real Estate Report
Links not working? Email jbarman@compass.com and I will send you a PDF of the same info.
Want to see the data for a specific city? Let us know and we will gladly forward that along! |
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| Featured Listings and Sales |
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| | | 1400 Bowe Avenue #1709, Santa Clara |
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| | | | 4 BD 4 BA 3,246 SF $2,250,000 |
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| Luxury Property Collection |
| | Looking for a luxury property or even a brief escape from reality? Flip through our online magazine, Compass Luxury, for some of the most exclusive listings in the United States and around the world. |
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Please feel free to forward this newsletter to friends and family - and remember, we are never too busy for your referrals - everywhere! |
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| | | DRE #01270223 & #01281597 REALTORS® M: 650.759.1182 jbarman@compass.com JanieandJohn.co |
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Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 01527235, 01527365. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions. |
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