The Bay Area insurance market has changed…Most people haven’t.

Too many buyers, sellers, and even experienced real estate professionals still evaluate a property the way they did five years ago. That approach no longer works.

Insurance underwriting has become far more technical. Underwriters increasingly evaluate the age and condition of a home’s electrical infrastructure because it directly affects risk. Active knob-and-tube wiring, Federal Pacific, Zinsco, Challenger panels, fuse panels, and aluminum branch wiring can materially influence carrier appetite, pricing, inspection requirements, and, in some cases, whether standard market coverage is available.

This isn’t just an insurance issue.

It’s a real estate issue.

It affects:

• Purchase negotiations

• Financing timelines

• Capital planning

• Property value

• Exit strategy

For multifamily owners, the impact is even greater. Legacy electrical systems can affect operating costs, refinancing, investor underwriting, and long-term asset value.

California’s insurance market is beginning to stabilize as more carriers cautiously expand their participation and FAIR Plan growth slows, but that does not mean underwriting standards are becoming less rigorous. In many cases, they are becoming more sophisticated.

The most successful buyers, owners, and Realtors understand that insurability is no longer something you verify after opening escrow.

It is something you underwrite before making a decision.

Insurance Impact

The condition of a property’s electrical system is increasingly part of its financial profile. Owners who understand and address legacy electrical risks are generally better positioned when seeking insurance, refinancing, or preparing a property for sale.

If you’re evaluating a Bay Area property built before 1960, understand the electrical infrastructure before someone else prices the risk for you.