The October 15 insurance deadline is this week. Starting that date, the FAIR Plan’s new rate structure applies to every new and renewing policy in California. That includes properties we work with across Pasadena and the San Gabriel Valley. If you’re mid-transaction or thinking about listing soon, the timing matters more than the headline number.
Why the October 15 Insurance Deadline Matters if You’re Selling
A property insured under the old rate structure can look more affordable than it really is. Once that policy renews, the buyer sees a different number. If your listing is close to going live, get a current quote now. Don’t assume the existing policy’s cost is what a buyer will actually see. A pricing conversation built on real, current insurance costs holds up. One built on the old number often doesn’t, especially once an appraisal or the buyer’s own quote comes back higher than expected.
Why the October 15 Insurance Deadline Matters if You’re Buying
A quote you got before this week may not hold. Rates tied to the old structure don’t carry over automatically once a policy binds. If you’re actively writing offers, call your insurance agent. Confirm whether your quote reflects the new rates or an old one. Ask whether you should expect an adjustment before the policy takes effect.
What to Do This Week
For sellers: get a current insurance quote on your own property before you finalize a listing price. This matters most if you haven’t pulled a new quote in the past several months.
For buyers: call your insurance agent directly. Confirm whether the quote in hand reflects pre- or post-October 15 pricing before you rely on it for your offer.
We’ll go deeper on each side of the transaction over the next few posts. Next up: what this means specifically if you’re the one selling.
Jeffrey Kam, MBA
Broker/Owner, Green Street Real Estate
Source: California FAIR Plan Announces 29.1% Rate Hike for Homeowners This Fall, KQED — https://www.kqed.org/news/12094860/california-fair-plan-announces-29-1-rate-hike-for-homeowners-this-fall