As we head into another fire season, one question keeps coming up from clients: “How expensive is fire insurance up here?” It’s a practical question, especially as insurance premiums have become a growing part of the monthly cost of homeownership.
But surprisingly, almost nobody asks the question that may matter even more: What happens when insurance changes the value of an entire community?
I’ve lived on this mountain for more than 30 years and have been evacuated three times. The first time I was frightened and unsure what to expect. The second time I understood the process. By the third evacuation, I was calm because I had prepared ahead of time. What I’ve learned is that surviving a fire isn’t just about getting out safely. It’s also about protecting your financial future long before the flames ever appear.
For decades, buyers asked about schools, commute times and neighborhood amenities. Increasingly, they’ll also need to ask a new question: “Can I insure this home at a price I can afford?”
As a real estate broker, I’m not an insurance agent, and I’m certainly not qualified to tell anyone what policy they should buy. But I do see firsthand how insurance has become part of the affordability conversation. Monthly housing costs aren’t just principal, interest, taxes and utilities anymore. Insurance has become a significant factor in what buyers can comfortably afford and, in some cases, whether they can purchase a particular home at all.
The issue isn’t simply that insurance can cost more in our mountain communities. It’s also that buyers may have fewer choices. Some properties have multiple insurance options, while others may require specialized coverage. Those realities can influence purchasing decisions just as much as interest rates or property taxes.
That matters because affordability affects demand, and demand ultimately influences property values. If fewer buyers can comfortably afford the total cost of owning a home, the pool of potential purchasers becomes smaller. That’s not unique to mountain communities – it’s something homeowners across California are beginning to experience – but wildfire-prone areas often feel those changes first.
None of this means mountain real estate isn’t a good investment. People continue to choose our communities because of the lifestyle, the forests, the seasons and the sense of escape that simply can’t be duplicated in the valley. But today’s buyers are making more detailed financial calculations than they did even a few years ago.
That’s why preparation matters.
Now is an excellent time to review your homeowner’s insurance policy – not because you’re expecting disaster, but because understanding your coverage brings peace of mind. If you have questions about deductibles, evacuation benefits or what’s covered, schedule a conversation with your insurance professional before an emergency happens.
Then spend an hour documenting your home. Walk through every room with your phone, recording video. Narrate what you’re seeing, open cabinets and drawers, and capture the contents of closets, garages and storage areas. Save that recording in cloud storage where it can be accessed even if your home cannot.
Our mountain communities have always lived with the reality of wildfire. That hasn’t changed. What is changing is that insurance has become part of the real estate conversation. Buyers are considering it, sellers should understand it and homeowners who prepare today will be in a much better position tomorrow – whether they ever need that preparation or not.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs, and the surrounding mountain communities. Reach her at (909) 442-1345 visit www.HomesInLakeArrowhead.com, and follow her on social media @TheresaGrantRealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
0 Comments