If you're buying or selling a home in San Diego County, there's a question that deserves to be asked much earlier in the transaction than it used to be:
Can this property be insured—and at what cost?
For years, homeowners insurance was often treated as one of the routine items buyers handled after getting an offer accepted. Buyers focused on the purchase price, interest rate, down payment, inspection and appraisal.
Today, insurance deserves a seat at the table much sooner.
Across California, homeowners have faced higher premiums, nonrenewals and fewer choices in areas insurers consider higher risk. California is working to stabilize the market and bring insurers back, and there are encouraging signs of progress. But for San Diego buyers and sellers, insurance availability and affordability can still affect whether a real estate transaction makes sense—or even whether it closes.
Why This Matters in San Diego
San Diego County has an incredibly diverse housing market.
We have coastal communities, urban neighborhoods, suburban developments, rural properties, canyon-adjacent homes and communities near open space and wildland areas.
That means insurance risk can vary significantly from one property to another.
A beautiful home may check every box for a buyer—location, schools, layout, price and condition—but the insurance conversation can change the financial picture.
That's why I believe buyers should investigate insurance before they become emotionally and financially committed to a property.
The Insurance Market Is Changing
California's homeowners insurance market has gone through a major disruption as insurers have reassessed wildfire exposure, rebuilding costs and other risks.
The California Department of Insurance is now implementing its Sustainable Insurance Strategy, which is designed to increase the availability of coverage, particularly in wildfire-distressed areas.
Under the strategy, insurers using the state's new catastrophe-modeling and reinsurance framework are required to increase coverage in distressed areas. The state reports that multiple insurance groups have committed to expanding their California business.
That's encouraging.
But improvement in the overall market doesn't mean every home will suddenly be easy or inexpensive to insure.
Insurance is still property-specific.
Why Buyers Need an Insurance Quote Early
One of the biggest mistakes a buyer can make today is assuming that because a property looks similar to another home nearby, the insurance will also be similar.
It may not be.
Insurance companies evaluate numerous factors when determining whether they will insure a property and how much the premium will cost.
Those factors can include location, wildfire exposure, construction characteristics, roof condition, claims history, replacement cost and mitigation features.
The premium can also affect a buyer's overall housing expense.
For buyers obtaining a mortgage, homeowners insurance is generally part of the cost lenders consider when determining the buyer's total monthly housing obligation.
So imagine qualifying for a home based on one estimated insurance cost and later discovering that the actual premium is substantially higher.
That can change the numbers.
My advice to San Diego buyers is simple: don't wait until the end of escrow to investigate insurance.
Sellers Need to Think About Insurance Too
Sellers may wonder:
“Why should I care about the buyer's insurance? Isn't that their responsibility?”
Technically, the buyer obtains the policy.
But practically, insurance availability can affect the marketability of your home.
If multiple buyers discover that your property is difficult or expensive to insure, that can influence offers, negotiations and ultimately the pool of buyers willing or able to purchase the property.
That's why sellers—especially those in areas with elevated wildfire exposure—may benefit from understanding the insurance environment surrounding their property before going on the market.
The goal isn't to scare buyers.
It's to avoid surprises.
What About Wildfire Areas?
Wildfire risk is particularly relevant in Southern California.
Homes near canyons, hillsides, open land or wildland areas may receive additional scrutiny from insurance companies.
California has also introduced regulations intended to recognize wildfire mitigation.
Improvements such as defensible space, certain roofing materials, ember-resistant vents and other home-hardening measures may help reduce risk and, depending on the insurer and policy, may qualify homeowners for discounts.
This is another reason homeowners should document improvements they've made to reduce wildfire exposure.
A safer property isn't just good for protecting your home—it may also become increasingly important to insurability.
What Is the California FAIR Plan?
Some California homeowners who cannot obtain coverage through the traditional insurance market turn to the California FAIR Plan.
The FAIR Plan is intended to serve as an insurance option of last resort.
It can provide basic property coverage when traditional coverage isn't available, although homeowners may need additional coverage to approximate the protection offered by a traditional homeowners policy.
California has seen significant growth in FAIR Plan enrollment during the insurance crisis.
State regulators are now trying to reverse that trend by encouraging insurers to return to higher-risk communities and move consumers back into the traditional market.
For a San Diego buyer considering a property where traditional coverage is difficult to obtain, understanding the FAIR Plan and the total cost of the required insurance package is extremely important.
Condo Buyers Should Pay Attention Too
This isn't only an issue for detached homes.
Condo buyers should understand both their individual insurance needs and the insurance maintained by the homeowners association.
The HOA's master insurance policy can affect the entire condominium project.
Buyers should review the HOA documents and ask questions about insurance coverage, deductibles, recent increases, claims and potential assessments.
This is especially important because insurance expenses ultimately affect the HOA's budget—and potentially the monthly HOA dues paid by homeowners.
We've already seen how condo financing requirements can affect whether a condominium is considered warrantable.
Insurance is another piece of that puzzle.
California Is Trying to Bring Insurers Back
There is some encouraging news.
California's Department of Insurance reports that insurers are beginning to expand coverage under its Sustainable Insurance Strategy.
The state has changed its regulatory framework to allow approved forward-looking catastrophe models and certain reinsurance costs to be considered when rates are established.
In exchange, participating insurers are expected to increase coverage in wildfire-distressed areas.
The goal is to create a more sustainable insurance marketplace and eventually reduce dependence on the FAIR Plan.
Several insurers have announced plans to expand coverage, and some companies that previously reduced or stopped new business are reconsidering California.
That's progress.
But it won't happen overnight.
What Should San Diego Buyers Do?
When you're considering a home, insurance should now be part of your early due diligence.
Before removing applicable contingencies, buyers should consider obtaining actual insurance quotes for the specific property rather than relying solely on general estimates.
Ask questions.
Find out whether multiple carriers are willing to insure the property.
Understand the premium.
Understand the deductible.
And if the property requires FAIR Plan coverage, understand what additional coverage may be needed and what the total annual cost will be.
Most importantly, make sure those numbers fit comfortably within your overall homeownership budget.
What Should San Diego Sellers Do?
If you're preparing to sell a property—particularly one in an area that could be viewed as having elevated wildfire exposure—consider discussing insurance early with your real estate professional.
Know whether insurance has been an issue in your neighborhood.
Keep records of improvements you've made to the property.
If you've completed roof improvements, vegetation management, defensible-space work or other home-hardening improvements, maintain documentation.
And remember that today's buyer isn't only asking:
“Can I afford the house?”
They're increasingly asking:
“Can I afford to own and insure the house?”
Those are two different questions.
The Bigger Real Estate Lesson
Real estate transactions are becoming more complex.
Interest rates matter.
Property taxes matter.
HOA fees matter.
Insurance matters.
And the purchase price is only one part of determining whether a property is truly affordable.
The good news is that buyers don't have to figure all of this out by themselves.
The key is assembling the right professionals early and investigating potential problems before they become expensive surprises.
Minnie's Market Tip
"Before you fall in love with a home, make sure you can comfortably own it, finance it—and insure it."
That's a question I want my buyers asking earlier rather than later.
If you're thinking about buying or selling a home anywhere in San Diego County and you're concerned about how insurance could affect your transaction, contact me. We can discuss the property, your goals and the questions you should be asking before you make your next move.
About Minnie Rzeslawski
Minnie Rzeslawski is a Broker Associate with RE/MAX City Real Estate and Broker/Owner of The 24K Real Estate Group. With 38 years of experience serving buyers and sellers throughout San Diego County, she specializes in residential real estate, probate sales, trust sales, first-time homebuyers, and strategic home marketing.
Minnie is committed to educating her clients so they can make confident real estate decisions.
Follow Minnie on Facebook and subscribe on YouTube for weekly San Diego real estate updates. September 14, 2026
