Posted by Michelle/AL on 1/9/07 8:34pm
Msg #170068

California Closings

The fires in Malibu made me think about this. In my loan packages here in Alabama the Borrower has to sign docs related to the property either being in a flood zone or not. In California do Borrowers have to sign docs related to property being in fire zones? Signed Curious in Alabama.

Reply by cara on 1/9/07 9:34pm
Msg #170073

This is my understanding: Flood zones are designated by Feds nationwide because "normal" casualty insurance policies exclude damages arising out of flooding. Flooding is deemed to be an extraordinary risk by insurers. Therefore, feds make flood insurance available to homeowners who live in federally designated flood zones. The purpose of the flood zone disclosure is to put the homeowner on notice that they can purchase additional flood hazard insurance. I believe the losses suffered in Malibu will be covered by regular fire and casualty insurance.

While earthquake zones are not formally designated, earthquake insurance is available to California residents (at a very high premium).

Reply by John_NorCal on 1/9/07 10:01pm
Msg #170078

I have not come across this, I have never heard of a designated fire zone. Of course with any property that has a greater exposure to a particular hazard, it behooves the seller and agent to make all the facts known, in fact that is a legal requirement. There are geologic hazard disclosures according to the Alquist-Priolo Act. And if a home is located to a known nuisance, such as criminal behavior, then that has to be disclosed. We even have to disclose if someone has died in the house in the recent past. So probably to be on the safe side, when in doubt, disclose.

Reply by TitleGalCA on 1/9/07 10:08pm
Msg #170079

Re: California Closings - yes

A natural hazards report is provided by the seller to the buyer, and it does contain information about "high fire hazard areas" in addition to earthquake zones, flood zones, liquifaction zones, etc.

Reply by Michelle/AL on 1/9/07 10:09pm
Msg #170081

Thank you. n/m

Reply by Kat Gardner on 1/9/07 11:37pm
Msg #170094

Re: Thank you.

Hi everyone, Yes there are high fire zones, and some are hard to get insurance for. In fact a few years ago, some one purchase a property in a high fire hazard area and the transaction close, shortly after their current insurance dropped them, coming to realization they missed the fact they did not cover high fire zones, in fact they had such a hard time finding insurance at a decent rate the clients went back to the selling agents, the agent suggested going to the neighbors to find out what insurance the neighbors had, this brought a resolution to calm everyone fears, there is an insurance for everything out there, however, at a cost.

Reply by Larry/Ca on 1/9/07 11:59pm
Msg #170095

Kat, can you give an example of...

a high fire zone or where we could find those areas designated as such. I have personally never heard of this. I live in the forest and many companies would not insure me because my roof was shake shingles, not good in the forest. I did find insurance and it was not expensive. I would think that if there was a high fire zone that I would be in one and would be interested to see this designation.

Larry

Reply by TitleGalCA on 1/10/07 12:24am
Msg #170098

Re: Kat, can you give an example of.. Malibu = every year

You can order a report for your own property. Just do a search for "natural hazard reports for California" and you'll get lots of companies who sell them.

Reply by Larry/Ca on 1/10/07 12:36am
Msg #170099

thanks TitleGal, I did find that the...

Director of Forestry under government code 51178 shall identify these very high fire zones in California.

Reply by cara on 1/10/07 10:31am
Msg #170139

Re: thanks TitleGal, I did find that the...

Yes, while there are high fire zone, there is no national Fire Insurance like the federal flood insurance program. Thus, there are no additional fire zone documents in any CA closing doc package I have seen. I believe the question was whether there were docs for CA fire hazards similar to the flood hazard disclosure required by federal law.

Reply by TitleGalCA on 1/10/07 12:37am
Msg #170100

Here's a link

http://www.nhdreport.com

California government code requires seller provide buyer with one before the sale can close.