What To Think About When Buying a Rural Home
Here’s why moving out to the country might make your insurance cost more.
Do you know what to look out for when you move into a rural area? Because of COVID, People are looking for more space when they buy a home. The obvious choice is to move out to the country, but there are a few things you have to know about before doing this, especially with insurance. It was a few years ago when we first had a client who had to go with a California FAIR Plan, and that was a bit of a shock to everyone.
If you’re unfamiliar, typical insurance agencies might not cover rural homes. For those cases, the state of California put some plans in place which ensure that you can get insurance, but the rates will likely be much higher. In our client’s case, their yearly premium was $20,000, which almost doubled their mortgage payment. That situation is not normal, but $10,000 or $5,000 can happen with these plans.
It’s pretty easy to tell what factors affect these rates. Being on top of a hill, how close you are to the nearest fire station, and whether or not you have a fire hydrant nearby all affect your premium significantly.
There are a few more factors that you have control over as well. Having a water tank that is accessible for firefighters and creating a defensible space by clearing out the brush in a 200 feet area around your house can help. In El Dorado county, cutting back the brush like that is actually mandatory.
You should also work with a local insurance broker. They might walk the property and do a four-year analysis instead of going with the highest possible premium. It can make a huge difference, so always go local.
If you have any questions about moving out to the country or insurance, give us a call. We have a great list of local insurance agencies, and we just moved out here recently ourselves, so we can definitely help.