Happy May!
Happy belated Mother's Day to all mothers of children, pets, and people who act like children or pets.
Last weekend, I attended the graduation of my second child, Blaise, from Lewis & Clark College. How was it? Honestly, I've never been so bored for 3+ hours. Everyone around me was glued to their phones while 590 names were read, one by one. The takeaway? College graduation ceremonies are screaming for a little innovation — maybe even AI. I'm very proud of Blaise, but we can celebrate with pomp and circumstance in under an hour.
Now for real estate news
Q: "How's the market?"
A: It depends—everyone's favorite answer.
If you're selling a 3-bed, 2 bath, level-in, level-out home with a yard on a beautiful street in lower (not far up in the hills) Montclair, Berkeley, or El Cerrito, you've got a unicorn. If your home is in Piedmont, throngs of millennials will trek over the Bay Bridge and up 101 to buy a lifetime of happiness. Once they have children, this dream will quickly melt away, but escrow will be long closed. The upshot? To sell a house in a 7% interest market with worldwide turmoil, you'll need to rely on your Real Estate Agent to use strategy and timing to sell your home faster, for more money. Is this self-serving, duh, yes.
Q: If we sell, where would we go?
A: Have you considered Africa?
At this week's sales meeting, Red Oak Realty CEO Vanessa Bergmark shared insights from the East Africa Property Investment Summit. She noted growing opportunities across the Atlantic — in places like Mauritius, an African island nation in the Indian Ocean with attractive living costs, low taxes, and appealing retirement options. It's close to Europe but not yet flooded with Americans, like Portugal. When you read the news in America, are you more curious about emerging opportunities to retire outside the U.S.? Let's connect.
Q: What's the short story on home insurance?
A: It sucks and will get worse.
The lead article in the newsletter below is a good read. Call me if your insurance company drops you or gives you a hard time about something their drone found on your roof. I've got answers and people to help.
Q: Do you have any good news?
A: Yes, we can recycle Pickleballs.
If you have Ridwell, a supplemental recycling service, you can recycle pickleballs in June! It's a great way to keep plastic out of landfills. I'm happy to pick up your balls and add them to my Ridwell bag - just respond to this email.
Please consider me a resource for all things real estate. If you know anyone experiencing a life transition, I'm here to help. Referrals are the lifeblood of my business.
With gratitude,
P.S. If our kids attended Montclair Elementary School together, ping me because I want to invite you to a fun event on May 24th.
Home Insurance In The East Bay: What Homeowners Need To Know In 2025
Recent shifts in California's home insurance market have brought new challenges and opportunities for East Bay homeowners. Wildfire risk, insurer withdrawals, and sweeping regulatory reforms drive these changes. Here's the latest and some suggestions for protecting your home and investments.
Significant Changes Affecting East Bay Homeowners
1. Insurer Withdrawals and Policy Non-Renewals
- Several major insurers - including State Farm, Allstate, and Farmers - have either stopped writing new policies or have limited their exposure in California, citing wildfire and earthquake risk over the last several years.
- Safeco, a subsidiary of Liberty Mutual, will be dropping over 950 policies in the Bay Area starting in October 2025, specifically impacting East Bay residents.
- These withdrawals make it harder for homeowners to find or keep traditional coverage, especially in areas with high wildfire or earthquake risk.
2. Regulatory Reforms to Expand Coverage
- New state rules require insurers to cover at least 85% of homes in designated fire-prone zip codes to increase availability in high-risk areas.
- Insurers can now use advanced catastrophe modeling to set rates, which should better reflect actual risk but may also result in higher premiums for some homeowners.
3. Premium Increases and New Rate Rules
- Rate hikes have been approved for major insurers like Mercury General (12% increase) and Safeco (7.2% increase), impacting hundreds of thousands of Californians, including many in the East Bay.
- New regulations allow insurers to pass on reinsurance and wildfire-related costs to policyholders statewide, not just in high-risk zones. This means that even those in lower-risk areas may see higher premiums.
4. Expansion of the California FAIR Plan
- The California FAIR Plan is expanding coverage limits and options, especially for homeowners unable to secure traditional insurance. This includes higher limits for commercial and multi-family properties, which may benefit HOAs and landlords in the East Bay.
- The FAIR Plan's growing role is a double-edged sword: it provides crucial access, signals a strained insurance market, and can result in higher assessments and costs for all homeowners.
"With fewer providers, tighter restrictions and higher premiums, there is pressure on all sides of the homeowner insurance crisis, legislative, carrier viability and consumer concerns," confirmed Brian Moggan of Farmers Insurance here in the East Bay, which has "led to an increase in the use of the California FAIR plan." Founded in the 1960s, the FAIR plan is a private insurance company mandated by the state to provide coverage for homeowners and businesses who may not qualify for traditional coverage.
Homeowners in the East Bay with the FAIR plan are also required to bridge the gaps in coverage with a " wraparound" policy. The FAIR plan typically covers fire and related fire damage only, not theft, water damage, or personal liability. Homeowners typically have a " wraparound" policy to help cover what the FAIR plan is missing.
What East Bay Homeowners Can Do Now
1. Review and Update Your Policy
- Check your coverage limits and exclusions, especially if your policy is up for renewal or your insurer exits the market.
- Request a list of what your policy covers, including Additional Living Expenses (ALE), which your insurer must provide upon request.
- In the event of a declared state of emergency, ALE coverage must last at least 24 months, with possible extensions up to 36 months if rebuilding is delayed for reasons beyond your control.
- Make sure your policy coverage has kept up with the equity growth in your home. Underinsurance in the Bay Area is common, especially if you have not reviewed your policy in some time.
2. Shop Around and Compare Options
- Some insurers, like USAA (for military families), Chubb, and Mercury, are still writing new policies in the Bay Area, but availability is limited, and premiums are rising.
- Work with an independent insurance agent who can access multiple carriers and help you navigate the changing landscape. Reach out if you need a recommendation.
3. Consider the FAIR Plan if Needed
- If you cannot secure coverage through the traditional market, the California FAIR Plan is a viable alternative, though often more expensive. For some, it may be the only available option.
- The FAIR Plan is expanding its coverage limits and options in 2025, making it more accessible for homeowners and associations in high-risk areas.
4. Implement Fire and Disaster Mitigation Measures
- Take steps to harden your home against wildfire, such as creating a five-foot "Zone 0" ember-resistant perimeter, clearing vegetation, and using fire-resistant materials. These measures may improve your coverage eligibility and help lower premiums as insurers increasingly recognize mitigation efforts in their catastrophe models.
- Take advantage of community resources and local guidance from East Bay utilities and city fire departments.
5. Stay Informed and Advocate
- Monitor updates from the California Department of Insurance and local government regarding new regulations, insurance availability, and financial assistance for mitigation.
- If you receive a non-renewal notice, act quickly to find replacement coverage and appeal if you believe the decision was made incorrectly. Homeowners have successfully appealed cancellations if they can prove upgrades and vegetation management measures that an adjuster can verify.
The homeowner's insurance market is in flux, with homeowners and buyers experiencing fewer options and higher premiums, especially in fire-prone and earthquake-prone areas. Regulatory reforms are designed to bring insurers back and stabilize the market, but the transition may take time and is likely to mean higher premiums. Be proactive by reviewing your current policy, mitigating fire risks, and exploring potential insurance options - including the FAIR Plan - so that you are prepared to protect your home. Have questions or unsure of where to start? Red Oak has a network of local insurance brokers who can answer questions and secure policies, so don't hesitate to reach out.
