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California’s insurance crisis is roiling the real estate market. It could affect ‘almost every sale’

By Megan Fan Munce, Christian Leonard | SF Chronicle

Before insurance companies pulled out of the state, home insurance was separate from looking for a home.

Only after their offer was accepted did buyers start looking for insurance, which is necessary for a mortgage. With the insurance market in turmoil, some sellers are finding that buyers are pulling away due to the high cost or unavailability of insurance. Buyers, meanwhile, are making preemptive efforts to get insurance, making cash offers or opting not to buy homes at all.

“It used to be that homeowners insurance was a rounding error depending on where you lived. That’s not the case anymore,” said David Russell, professor of insurance at CSU Northridge.

Read more at: SF Chronicle