By Rayna Mack | San Diego County Real Estate Expert
The California insurance industry is changing fast, and San Diego real estate insurance is now a major factor in buying and selling homes. With coverage becoming harder to secure and premiums skyrocketing, the impact on the San Diego real estate market is undeniable.
To help buyers and sellers adapt, the state added a new Insurance Contingency to the Residential Purchase Agreement (RPA). Whether you’re looking to buy a home in San Diego or sell a home in San Diego, understanding how insurance fits into the deal is essential.
Why San Diego Real Estate Insurance Matters Now More Than Ever
Wildfires and climate risk have pushed insurance companies to raise rates or stop offering coverage in certain areas. While many homes for sale in San Diego are not in direct fire zones, insurers are now flagging nearby brush, outdated roofing, and older wiring.
To check if a home is in a fire-prone area, use the Fire Hazard Severity Zones Map by CAL FIRE. It’s a must for buyers doing due diligence or sellers prepping a listing.
New Fire Zone Rules: AB-38 and Defensible Space
California now requires sellers to complete a Defensible Space Inspection under AB-38 if their property lies in a high or very high fire hazard zone. This is especially relevant for San Diego real estate insurance since insurers want proof of fire-prevention steps.
If this inspection isn’t completed before close of escrow, the transaction could fall apart. Get it done early to avoid delays.
What the Insurance Contingency Means for Buyers
The new Insurance Contingency gives buyers 5–7 days to:
- Get insurance quotes
- Confirm that insurance is available and affordable
- Cancel the contract if they can’t get coverage
This contingency protects buyers from closing on a home they can’t insure, especially when navigating San Diego MLS listings in higher-risk zones.
How Sellers Can Prepare for Insurance-Related Delays
Sellers need to think like insurers. If you’re planning to sell a home in San Diego, prepare for these steps:
- Get a preliminary quote from an insurance agent
- Trim vegetation and address potential fire risks
- Schedule your AB-38 inspection in advance
- Work with a real estate team that understands San Diego real estate insurance
These steps help reduce surprises during escrow and build buyer confidence.
How the Rayna Mack Team Helps With San Diego Real Estate Insurance
We know how to guide our clients through insurance-related complications. The Rayna Mack Team helps both buyers and sellers move forward with clarity and confidence.
For Buyers:
- We connect you with trusted local insurance pros
- We explain how insurance affects affordability
- We structure the Insurance Contingency timeline effectively
- We help you identify insurable homes for sale in San Diego
For Sellers:
- We flag red flags before listing
- We help boost your property’s insurability
- We guide you through the AB-38 inspection process
- We position your home to stand out in the competitive San Diego real estate market
Make Your Next Move With Confidence
In today’s market, San Diego real estate insurance is just as important as price or location. Whether you’re planning to buy or sell, you’ll need expert guidance and smart preparation.
Let the Rayna Mack Team help you stay ahead. From navigating insurance inspections to connecting with the best providers, we’re here to support you every step of the way.
Contact us today to move forward—prepared, confident, and protected.
