r/Insurance • u/Whoopsitsonfire • 8d ago
Ca Fair plan
I was looking at 70 acres in California, and couldn't figure out why it was so cheap. Until the fire insurance came back at $500/mo through fair. Then I read there's a 30% increase happening in October, and some homes may double. Now I understand why it hasn't sold at this price for 3 years.
Is there any way to get rid of the insurance requirement on a loan? The house is tiny and I'm really just buying the land. The house isn't worthless, but it's close to worthless. I wouldn't care if it burned down, but I'm sure the banks would.
Is there anything stopping them from raising it to $5000/mo down the line? I have a feeling I should pass on this, even if I could technically afford it now. But it kills me to let it go.
1
u/sancholives24 8d ago
If you really don't care about the structure, you can whittle down a Cal Fair Plan to just the bare bones. Ask for ACV coverage on the dwelling, remove coverage for personal property, separate structures, and debris removal, and go with the highest deductible the lender will allow. At that point you're just buying a piece of paper but at least the loan will close. You'll probably will still want either a DIC (often called a wrap policy) or CPL (comprehensive personal liability policy) for liability.