By Megan Fan Munce, Christian Leonard | SF Chronicle
Before insurance companies started retreating from the state, home insurance was divorced from the process of searching for a home.
Only after getting their offer accepted would buyers begin to look for insurance, which is required for a mortgage. Now, with the insurance market in turmoil, some sellers are finding buyers backing out due to the high cost or unavailability of insurance. Buyers, meanwhile, are scrambling preemptively to obtain insurance, making all-cash offers or choosing not to purchase homes at all.
“Homeowner’s insurance used to be a rounding error, depending on where you lived. It’s not that way anymore,” said David Russell, a professor of insurance at CSU Northridge.
Read more at: SF Chronicle