To qualify for insurance, the four required home system updates (plumbing, electrical, roof and HVAC) have added one more.
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The personal stories of one Realtor’s battles and triumphs in the highly-competitive Bay Area Real Estate Market, seeking to illuminate and humanize the very real ups-and-downs of homeownership.
For years, we’ve told our clients that the price of a property didn’t matter as much as the “PITI” (principal, interest, taxes and insurance), with the assumption that most people never pay off their home loans until they sell. (That remains true.)
In other words, owning a piece of the “American Dream” was all about the carrying costs, and for the most part, it still is. However, it’s important to understand that the “carrying costs” of home ownership have gone up significantly over the past few years, and unfortunately, as long as supply continues to fall well short of demand, I don’t see that changing anytime too soon. (Short of a major recession and I suspect, that none of us wants to see our economy hit a brick wall. Of course, I’m not an economist so I’m spitballing here.)
Yes, the more expensive carrying costs have a lot to do with higher interest rates (don’t look for sub-3% rates to return in our lifetime; that was never sustainable), but the insurance carriers have now doubled, tripled, and in some cases, quadrupled the insurance cost of home ownership. (Ouch.)
To be fair, it makes sense that old systems should be updated for reasons of safety, security, and comfort, but the timeline that insurance companies give new Buyers is steep, to say the least. In addition to the purchase price of a home, Buyers should budget for immediate improvements once the deed transfers, because it’s going to be tough to maintain home insurance otherwise.
This is especially true for our East Bay housing stock that in many instances has past the centennial mark. For all the many good reasons to own a home, (and there are many), the truth is that homes are NOT static propositions. Over time, houses wear out and age. Consequently, they do need attention on an ongoing basis. (Budget accordingly.)
So now, having laid the groundwork, with Jorge’s permission (thank you, Jorge), I thought this message was worth passing along (absent the usual sarcasm and wit).
“We’re excited to share important 2026 insurance updates for California homeowners, along with expert guidance to help ensure your property remains protected and compliant as carrier requirements continue to evolve. At Jorge Mancheno Insurance Agency, we specialize in keeping our clients informed and helping them secure the best coverage and benefits available.
New Carrier Requirements Becoming Standard:
Many carriers now require professionally monitored fire alarms, automatic water shut-off devices, and low temperature monitoring devices.
- Automatic Water Shut-Off Devices: MOEN partners with carriers to provide professional installation and discounts. MOEN details for future insurance requirements
- Central Station Fire Alarms & Low Temp Devices: Protect your home from fire and frozen pipes, while ensuring compliance for coverage.
The “Big 4” Home System Updates: Carriers typically require updates or replacements to the “Big 4” systems if they haven’t been replaced within the last 25 years:
- Plumbing
- Type of plumbing materials
- Age of the system
- Electrical
- Circuit breakers required
- No knob & tube wiring
- No Federal Pacific, Zinsco, or Stab-Lok panels
- Roof
- Roof type
- Age of the roof
- HVAC
- Heating system type
- System age
- Systems over 30 years old may raise underwriting concerns
In 2026, the “Big 4” Becomes the “Big 5”:
A major new addition to carrier requirements is Automatic Water Leak Detection & Shut-Off Systems, such as Moen Flo.
- Helps prevent catastrophic water damage
- Reduces insurance risk
- Improves carrier eligibility
- Homes with Moen Flo shut-off systems have experienced up to a 96% reduction in water damage claims*.
So there you have it. Do what you will with this information, and please feel free to shop around. (My system is already on the UPS truck.)
*See more at moen.com/Safeco. Many carriers are now requiring or strongly encouraging these systems, and professional installation options and potential insurance discounts may be available. Learn more at moen.com/Safeco.”
How can we help you?
Julie Gardner & Sarah Abel | Compass Realty
Not just Realtors, but consultants in all things house and home, we’re here to educate, explore, examine and refer . . . In short, you may count on us to take care of your home as if it were our own and anyone who knows us, knows we take pretty darn good care of our homes.
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