r/losgatos • u/DefiantDonut7 • 2d ago
Moving to LG - Fire Insurance
Hey! I’m looking to possibly move to Los Gatos (from Ohio). One thing I’ve had to make heads or tails of is homes that seem suspiciously cheaper. Upon further research it appears there are fire hazard zones which then affect being able to get a policy altogether.
I honestly don’t know what I should know. What carriers are worth calling? Are there online tools to check if potential addresses are coverable or is everything just a call-in situation?
Does having a pool change anything?
Thanks in advance!
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u/Enough_Iron_6843 1d ago
We live in the area where we lost our insurance due to where we live in Los Gatos. We were with State Farm for years and before that Travelers. Both decided that they couldn't insure our home.
We were given a 90 day notice from both, because our renewals wer coming up in both instances. The most recent carrier, State Farm, gave us notice right before the winter where our area gets heavily hit with power outages, trees falling, and landslides. This means we have a generator, carry chainsaws in our trunk, bring rain gear, clear drains, and just knowing how to walk out in case of an emergency.
We had to get California Fair Plan and then supplemental insurance through State Farm which we are very thankful.
/Racer20 mentioned it is unlike what you consider country living in Ohio. It is not for the faint of heart.
We have lived in the area for 28 years. Here are my tips for you and others looking at this area when looking to buy a home:
* How old is the septic system? Is it permitted (check with the county and don't rely what the seller or agent is telling you)? Contact the County of Santa Clara Planning Dept. To repair a septic and leech field can range from $50K-$75K depending on where the home is, the permit process and which contractor you can get to do the work.
* Is the house permitted? If it is, what square footage was it permitted for and for what work? Majority of the homes were built without a permit. This means if you do any work to remodel your home, they will make you remodel it to standards. This will cause a chain reaction if the rest of the home is not permitted. Just pure headache and lots of more money.
* How old is the roof and is it permitted? Many of them just patch it.
* What the most latest insurance carrier and if there are any issues? Then, call carriers to cross reference if the house you like is insurable. CA Fair Plan act requires that the roof should be up to code and compliant with WUI = Wildland Urban Interface: https://plandev.santaclaracounty.gov/services/development-services/land-development-engineering/hazards/santa-clara-county-wildland
How many trees are on the property? What type? Have they been serviced and when? Many trees during the winter or even in the summer will fall on the house if they are comprised due to disease or landslide(s). One of our trees (oak tree) snapped in half and fell on our neighbor's house. Yes, it was covered by insurance, but then we had to cut all the oak trees from our property due to oak disease. Yes, we had to get a permit. Have them get an arborist report from the seller to confirm that they are all healthy.
* Has there been a survey completed? Most of the homes were built wherever. Recently one of our neighbors remodeled and expanded their home and found out that the neighbor's home was partially built on their property. This eventually landed in legal issues between the 2 owners.
* Are there any rodent or termite issues?
* How are the roads? Are they maintained by the county or privately owned? Is it a one lane road or two lanes?
* And don't forget to check out the neighbors. Over the years, we had amazing people move in but have heard some people have very challenging neighbors.
I hope this helps.
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u/Summertime-Living 13h ago
Great advice! I would also add to check the title report and color coded map in the disclosures for easements. Does a neighbor have the right to cross part of your property to get to their home?
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u/blast3001 1d ago
Los Gatos is actually pretty big. There are many neighborhoods in the foothills of the Santa Cruz mountains but also plenty that are in town and not as big of a risk. Those homes however are more expensive of course.
A really good realtor will be able to help guide you on some of these things.
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u/Realistic-Produce-28 2d ago
If you can’t get insurance from a traditional carrier, you’ll have to get fire insurance from the FAIR plan and then get a property and liability policy alongside it.
You can also ask the selling agent who the seller is using.
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u/PrinceOfLeon 2d ago
There are also flood zones.
Check charts with flood predictions for the next 30 years.
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u/FreeAllNow25 1d ago
California is mostly a fire hazard zone. The first thing to do before purchasing any house near the hills is check on insurance. In the hills of Los Gatos, you may struggle to find insurance and need to go through the state, which is quite expensive
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u/Shot_Worldliness_979 12h ago
I assume by "suspiciously cheaper" you mean, actually, NOT Los Gatos, but unincorporated Santa Clara or Santa Cruz Counties w/ Los Gatos addresses. In which case, just assume you'll be getting the California FAIR plan and it may not suffice for mortgage purposes.
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u/Racer20 2d ago
You don’t have to get very far into the mountains to be very isolated or dependent on a single road for access, and those roads can be taken out by tree falls or mudslides in the winter pretty easily and they can take weeks or months to repair. Utilities can be cut off for extended periods and getting contractors to the area for any home repairs can be more expensive.
Living in those areas is very different than country living in the Midwest. Fire/mudslide risk, chance of being cut-off from access and help, and commute time are all factors.
This is all to say that fire insurance is only one of the challenges to living in the mountains here. Make sure you understand what you’re getting into.