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How Do Presidential Elections Impact the Housing Market?
The housing market plays a critical role in the U.S. economy, and it can be sensitive to political shifts, especially during presidential election years. Election outcomes can impact everything from mortgage rates to housing prices. Let’s dive into how presidential elections can influence the housing market and what homebuyers, sellers, and investors should know.
1. Economic Uncertainty During Election Cycles
As elections approach, markets often experience periods of uncertainty. This can lead to hesitation among buyers and sellers, slowing down housing activity as people wait to see how policies might shift with a new administration. Uncertainty tends to lower consumer confidence, making people less likely to make significant financial commitments, such as purchasing a home.
Key Takeaway: Buyer and seller activity might decrease as the election nears, potentially slowing down the market and impacting home sales volume.
2. Impact on Mortgage Rates
Mortgage rates are influenced by various factors, including the overall economic outlook, which elections can impact. Although the president does not directly set mortgage rates, their policies, especially regarding the Federal Reserve and inflation, can influence them. Rates may fluctuate as the market anticipates economic policies or potential changes in leadership, and once the election is over, rates may adjust based on the incoming administration’s stance on economic growth and stability.
Key Takeaway: Mortgage rates may fluctuate in anticipation of an election but could stabilize once the results are clear and economic policies are set.
3. Housing Policy Shifts
Presidential candidates often have different views on housing policies, such as affordable housing, tax incentives, and regulations. Changes in leadership can bring new housing policies that influence market dynamics. For example, a president who supports tax breaks for first-time buyers or incentives for developers of affordable housing could make homeownership more accessible for certain groups, potentially increasing demand.
Key Takeaway: New housing policies introduced by an incoming president can shape the market for years, impacting everything from homeownership rates to housing affordability.
4. Stock Market and Housing Market Correlation
The stock market can be sensitive to elections, reacting to the potential for policy changes. When the stock market is strong, people may feel more confident in their financial stability and more inclined to invest in real estate. Conversely, stock market volatility, which often happens around elections, can make investors more cautious. Changes in investor behavior can impact the luxury housing market or regions where high-net-worth individuals heavily influence real estate demand.
Key Takeaway: Fluctuations in the stock market, which tend to occur around elections, can impact housing market dynamics, particularly in higher-end markets.
5. Regional Impact Based on Candidate Policies
Some housing markets may see different effects based on the specific policies of presidential candidates. For example, regions where the economy relies on industries like oil, tech, or agriculture might be impacted by policies that benefit or restrict those sectors. A president’s stance on urban development or climate policy, for example, may encourage growth in certain areas or lead to stricter building codes in others.
Key Takeaway: Regional markets might see unique impacts depending on the policies and priorities of the elected president.
6. Short-Term Uncertainty vs. Long-Term Trends
While election years tend to bring a certain level of unpredictability, the overall impact of a presidential election on the housing market can vary. Often, once policies are implemented, any uncertainty settles, and housing market trends normalize, aligning more closely with broader economic conditions. Over the long term, factors like supply and demand, interest rates, and demographic trends generally hold more influence than any single election cycle.
Key Takeaway: While short-term uncertainty may cause temporary shifts, the long-term trajectory of the housing market is typically influenced by factors beyond the election itself.
Presidential elections can certainly impact the housing market, but the effects often depend on the specific policies of the new administration, as well as the general economic conditions. While some buyers and sellers may choose to hold off during election years, the housing market remains resilient, with adjustments often normalizing once the election dust settles.
For homebuyers, sellers, and investors, understanding these potential impacts can help make more informed decisions, whether you’re considering buying a home, selling one, or investing in real estate. Keep an eye on policy announcements, economic indicators, and long-term market trends to navigate the housing market during and after election seasons.
Reasons to VOTE NO on Prop 33
At first glance, California’s Prop 33 may sound like a good deal, but a deeper look reveals why voters should consider saying NO. Here are the top reasons why this proposition could harm consumers and drivers:
1. Increased Costs for New Drivers
Prop 33 would allow insurance companies to raise rates on uninsured people, regardless of the reason. This means new drivers, or people who let their insurance lapse temporarily due to unemployment, health issues, or financial hardship, would face hefty penalties. It’s not just those who are irresponsible—sometimes life happens, and punishing people with higher premiums is unfair.
2. Unfair to Low-Income Families
Those who can’t afford to maintain continuous insurance coverage, especially low-income families, would bear the brunt of Prop 33. While wealthier drivers can maintain coverage without issue, those who struggle financially could see steep increases in their premiums simply because they had a gap in their insurance coverage.
3. Insurance Company Benefits, Not Consumers
Prop 33 is backed by insurance companies who stand to make millions off its passage. While it’s marketed as giving “loyalty discounts” to consumers who maintain continuous coverage, the real benefit would go to the insurance industry, which could charge higher rates to those without continuous coverage. Essentially, it allows insurance companies to profit at the expense of people who can’t afford consistent insurance.
4. A Step Backwards for Consumer Protection
California already has strong consumer protection laws in place regarding auto insurance, thanks to Prop 103, which passed in 1988. This law limits the reasons an insurer can use to raise your rates, and Prop 33 would weaken these protections. It would open the door to unfair pricing practices that hurt vulnerable drivers.
5. Not Truly About Loyalty
While the proposition’s supporters emphasize rewarding customer loyalty, it doesn’t take into account why someone might not have continuous coverage. If you’ve ever been a student, lost your job, served in the military, or faced medical issues that kept you from driving, you could lose out on these so-called “loyalty” discounts, and pay more.
6. Repeat of a Rejected Proposition
Voters have seen this before. Prop 17 in 2010 was a similar proposition, also backed by insurance companies, and it was rejected. Prop 33 is just another attempt to push through a policy that serves insurers more than consumers. If it wasn’t a good idea in 2010, it’s not a good idea now.
Final Thoughts
Prop 33 may seem like it benefits drivers with continuous insurance, but it unfairly penalizes many others. It allows insurance companies to exploit lapses in coverage, harming people during difficult times. Protect yourself, your family, and vulnerable drivers across California by voting NO on Prop 33.
5 Renovations That Are Better For Home Sellers Than Remodeling
Selling your home is a time of change, and maximizing your return on investment is a top priority. While you might be moving for various reasons, getting the best price for your home is always a key concern. Many sellers start thinking about ways to boost their home’s value, and that often leads to the question: renovate or remodel?
Renovate or Remodel? What’s the Difference?
Renovating involves upgrading your home with newer materials or finishes, like replacing bathroom tiles or updating kitchen cabinets. Remodeling, on the other hand, changes the structure of your home, such as adding a new room or expanding a space. While remodeling might seem like a great way to increase your home’s value, it rarely pays off as much as you think. In fact, remodeling can often cost twice as much as you’ll earn back when you sell. On the other hand, renovating is typically more cost-effective and can have a significant impact on your home’s appeal.
Here are 5 renovations that are smarter and more affordable than remodeling.
1. Repaint Your Home, Inside and Out
A fresh coat of paint is one of the simplest and most effective ways to give your home a facelift. Whether you stick with the existing color or try something new, make sure to use the right type of paint for each surface. If you’re feeling creative, consider an accent wall or a unique color scheme for different rooms. Ask for advice at your local hardware store on the best paint options.
2. Refloor Where Needed
While your kitchen tiles may still look great, worn-out carpets or outdated flooring in other areas can make your home feel tired. Whether you want to replace the current flooring with a similar material or switch to something new, fresh flooring will give your home an instant update without major construction.
3. Repurpose an Underused Room
Got a room that’s not serving a purpose? Whether it’s a guest room, attic, or garage, think about how to transform it. Turn that spare room into a home office, a music room, or even an art studio. When buyers see a functional, inviting space, it helps them envision how they might use it too.
4. Modernize the Kitchen
A kitchen update is one of the best ways to add value to your home. Simple upgrades like new sink fixtures, updated countertops, repainted cabinets, or even replacing appliances like the dishwasher and stove can go a long way. However, be cautious not to over-modernize. Choose updates that fit the style of your home and the neighborhood.
5. Update the Bathroom
Along with the kitchen, the bathroom is a key area where updates pay off. You don’t need to add another bathroom—just ensure the ones you have are clean, modern, and welcoming. Consider replacing the sink and toilet with more eco-friendly models, updating shower fixtures, or installing a new vanity.
Plan Carefully and Make Smart Decisions
Before diving into any renovations, take a close look at your finances. Understand that while these updates can increase your home’s value, you may not get all the money back when you sell. If you’re considering bigger projects like adding a room or deck, do it because you’ll enjoy it, not because you expect a big return on investment.
Finally, it’s always smart to consult with a First Team real estate agent who knows your area. They can provide insight into which changes will truly boost your home’s market value, helping you make the best decision for your future.
The Impact of 1031 Exchanges on Your Tax Strategy
For real estate investors, taxes play a crucial role in overall returns. One of the most effective ways to manage tax liabilities is through a 1031 Exchange. This strategy allows you to defer capital gains taxes by reinvesting the proceeds from a sold property into a like-kind property, which can significantly enhance your tax strategy.
Key Tax Benefits of a 1031 Exchange
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- Tax Deferral: The primary benefit is deferring capital gains taxes. Instead of paying taxes on profits from a sale, you can reinvest the full amount into a new property, postponing the tax bill and allowing your investments to grow more quickly.
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- Compounding Growth: By reinvesting pre-tax dollars, you have more capital to work with, leading to potentially higher returns over time. This compounding effect can greatly increase your wealth.
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- Depreciation Recapture: A 1031 Exchange also allows you to defer taxes on depreciation recapture, which can be a significant tax liability when selling a property.
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- Estate Planning: If you hold the exchanged property until your death, your heirs can inherit it with a stepped-up basis, potentially eliminating the deferred tax liability.
Considerations and Risks
With years of personal real estate investment experience, Coldwell Banker Realty agent Marina Leung is well-versed in all aspects of buying and selling single and multi-family properties. In addition to this firsthand expertise, Marina is also a Certified Negotiation Expert (CNE), a coveted industry designation that empowers her to help sellers maximize profit and buyers save money. But most importantly, Marina treats her clients like family, respecting their hard-earned dollars as if they were her own. Fluent in Chinese, Marina is affiliated with the Newport Beach office of Coldwell Banker Realty, serving clients throughout Orange, Riverside, and Los Angeles.
As a seasoned investor, Marina doesn’t just talk the talk – she walks the walk. Marina sees real estate from multiple angles and knows there are no simple answers. She works diligently to understand a client’s long and short-term goals, their risk tolerance, how active they want to be in their investment and how much money they want to invest. She considers all factors when advising clients. When investing in real estate, you owe it to yourself to seek representation from a knowledgeable and consummate professional like Marina Leung.
Contact Marina today for assistance, she would be honored to serve you!
3 Reasons Why We’re Not Headed for a Housing Crash
With recent discussions surrounding the real estate market, many people wonder if a housing crash is imminent. However, several key indicators suggest that the market remains stable and resilient. Here are three compelling reasons why we’re not headed for a housing crash:
1. Inventory of Homes for Sale Still Below Norm
One of the primary factors influencing the real estate market is the inventory of homes available for sale. Currently, the inventory remains significantly below historical norms. This low supply, coupled with steady demand, helps stabilize home prices and prevent the oversupply that can lead to a market crash. With fewer homes on the market, buyers have fewer options, which supports price stability and market health.
2. Builders Aren’t Overbuilding, They’re Catching Up
Unlike in previous housing booms, today’s homebuilders are not overbuilding. Instead, they are working diligently to catch up with the demand created by years of underbuilding. During the last decade, the rate of new home construction lagged behind population growth and household formation. Builders are now striving to bridge this gap, but they are doing so cautiously and sustainably. This measured approach helps to prevent an oversaturated market and supports long-term stability.
3. Foreclosure Filings Are Still Very Low
Another critical indicator of market health is the rate of foreclosure filings. Currently, foreclosure filings remain very low, reflecting the overall financial stability of homeowners. Various factors contribute to this stability, including stricter lending standards, higher homeowner equity, and government support programs. Low foreclosure rates indicate that most homeowners are keeping up with their mortgage payments, reducing the risk of a surge in distressed properties that could destabilize the market.
In conclusion, the housing market shows no signs of an imminent crash. Low inventory, responsible building practices, and low foreclosure rates are key factors contributing to the market’s resilience. While it’s always important to stay informed and cautious, these indicators suggest that the housing market remains on solid ground.
How You Receive Returns on Your Investments
If you’ve considered investing in real estate, chances are that you’d want to reap the benefits without the hands-on management. This makes you a passive investor. Your efforts are limited to providing the capital, and it becomes our responsibility to make sure you get maximum returns on your investment.
However, in this process, it becomes extremely crucial for you to understand the various channels through which you may acquire your returns.
Multiple Avenues to Your Wealth
As a passive investor, you receive the returns on your investments through various channels, depending on the specific type of investment and the strategy you choose.
Even with limited liquidity, real estate investments offer three proven channels for regaining your initial investment and turning a profit
Quarterly Distributions
Investing in a real estate syndication allows you to receive quarterly distributions directly from the property’s net operating income. It’s like owning a piece of the pie and getting paid your slice every quarter.
Our suggestion? Aim for a 6-9% cash-on-cash return, so for every $100,000 you invest, you’ll receive roughly $7,000 annually. Calculate the return on your investment here.
Refinance Rewards
Sometimes, you benefit from the investment even before the final sale. Through strategic refinancing, as your syndicators, we can identify additional value in the property, allowing us to return some of your capital even before the end of the investment period.
As investors, this frees up your capital and allows you to pursue other investment opportunities while maintaining your original ownership percentage in the project.
Sales Profits and Beyond
When the investment cycle reaches its peak, the property is sold. After expenses and debt are paid, profits are distributed proportionately between you (the investor) and the syndication team. This final payout can be sizeable, making your passive income journey even better.
Passive Doesn’t Mean Passive Returns
As is the case with any investment, active research and careful consideration are extremely important. With the right strategy, passive real estate can be a powerful way to generate income, diversify your portfolio, and build wealth over time.
It starts with choosing a reputable syndication team that understands the potential risks associated with real estate investments and your distinct goals.
The Growing Demand for Multi-Family Real Estate
In the ever-shifting landscape of real estate, savvy investors like you are always on the lookout for the next big opportunity. And right now, there’s a rising star on the horizon: multi-family properties.
Why the Surge in Demand?
Multi-family real estate is riding high on the crest of changing demographics and lifestyles, paving the way for investors to capitalize on promising returns.
- Urbanization: Cities are bustling hubs of activity, drawing in more residents seeking convenience and connectivity. Multi-family properties, nestled in the heart of urban centers, offer the perfect blend of proximity to amenities and job opportunities.
- Shifting Preferences: In a world where experiences reign supreme, younger generations are gravitating towards flexible living arrangements. Co-living spaces and rental units provide the sense of community and freedom they crave, without the ties of homeownership.
- Student Housing Crunch: As educational institutions continue to thrive, the demand for student housing skyrockets. Purpose-built multi-family complexes near campuses offer secure and comfortable accommodations, presenting a golden opportunity for investors to cater to this burgeoning market.
- Economic Resilience: Even in turbulent times, multi-family properties stand strong. With their reliable cash flow and stable returns, they’ve proven to be a safe harbor amidst economic storms, making them an attractive addition to any investment portfolio.
What’s in it for You?
Investing in multi-family properties isn’t just about riding the wave of demand – it’s about reaping the rewards:
- Stable Cash Flow: With occupancy rates consistently above 95%, multi-family properties offer a reliable stream of income, cushioning against the uncertainties of single-tenant investments.
- Diversification: By adding multi-family properties to your portfolio, you’re spreading your risk and potentially boosting your returns. Studies have shown that diversification can reduce overall risk by 20-30%, a smart move in any investor’s playbook.
- Appreciation Potential: The value of multi-family properties has been steadily climbing, with an average annual appreciation rate of 4.5% over the past decade. And with demand outstripping supply, there’s plenty of room for property values to soar even higher in the years to come.
So, investors, as you navigate the currents of today’s real estate market, consider setting sail towards the promising shores of multi-family properties. With their resilience, returns, and potential for growth, they just might be the golden ticket you’ve been searching for.
3 Top Tips for Multi-Family Investors
- Conduct thorough market research: Before investing in multi-family real estate, it’s crucial to do proper due diligence by properly researching the market thoroughly. Analyze factors such as location, rental demand, vacancy rates, and potential rental income. This information will help you make informed decisions and identify profitable investment opportunities.
- Evaluate the property’s financials: Carefully review the financial aspects of the property, including its operating expenses, potential rental income, and cash flow projections. Consider factors like maintenance costs, property management fees, insurance, and taxes. Conducting a detailed financial analysis will help you determine the property’s profitability and potential return on investment.
- Build a reliable team: Surround yourself with a team of professionals who can support your multi-family real estate investment journey. This team may include real estate agents, property managers, contractors, and accountants. Having a reliable team will ensure that you receive expert advice, efficient property management, and accurate financial guidance. Never try to do everything yourself.
The 1031 Exchange: A Game-Changer for Real Estate Investors
Real estate investment can be a lucrative venture, but managing taxes can become a major concern for investors seeking to optimize their gains. That’s where the 1031 Exchange comes into play! Whether you’re a seasoned investor or just dipping your toes into the world of real estate, understanding the ins and outs of the 1031 Exchange can be a game-changer in growing your wealth.
What is 1031 Exchange?
A 1031 Exchange, also known as a like-kind exchange, is a tax-deferred transaction allowed under the United States Internal Revenue Code. It allows individuals or businesses to sell a property and reinvest the proceeds into a similar property while deferring the payment of capital gains taxes. The exchange must meet certain requirements and be completed within a specific timeframe. It is commonly used by real estate investors to defer taxes and potentially increase their investment portfolio.
How Does a 1031 Exchange Work?
Let’s break it down in simple terms. When you sell a property and want to defer the capital gains tax, you must reinvest the entire sale proceeds (net of selling expenses) into one or more replacement properties of equal or greater value. To do this, you must follow strict IRS guidelines and work with a qualified intermediary who facilitates the exchange.
Qualified Intermediary or Exchange Facilitator Role
Qualified intermediary or exchange facilitator cannot be related to you and that includes but is not limited to your relative, your attorney, banker, employee, accountant, real estate professional, or people who have served you in any of those capacities within the last couple of years. And you cannot be your own qualified intermediary or exchange facilitator.
Benefits of Utilizing a 1031 Exchange
- Tax Deferral: One of the most enticing perks of a 1031 Exchange is the ability to postpone paying capital gains taxes, allowing you to reinvest your entire profit and potentially accumulate more wealth.
- Portfolio Diversification: By exchanging properties, you can diversify your real estate holdings, reducing risks and potentially increasing cash flow.
- Wealth Accumulation: Continuously deferring taxes can lead to significant wealth accumulation and greater investment potential.
- Leverage and Increased Buying Power: With more capital available, you can leverage your investments and purchase higher-value properties.
The 1031 Exchange Process Step by Step
Since the 1031 exchange is complex, you should seek the advice of a tax professional for your specific needs. In general, the following are steps to doing a 1031 exchange:
- Identify the property that you want to sell.
- Identify the property that you want to buy which must be “like-kind” as the one that you are selling.
- Identify a qualified intermediary which is sometimes called an exchange facilitator to handle the funds in escrow until the 1031 exchange is complete.
- Determine how much of the sale proceeds will go towards the purchase of your replacement property.
- Make sure that you keep a close watch on the calendar. What does this mean? You have 45 days from the date you sell your property to identify potential replacement properties which you must provide in writing to both the Seller(s) and your qualified intermediary. Next, you have to purchase the replacement properties no later than 180 days after you sell your property.
- Be mindful of where your sale proceeds are. If you did not receive any proceeds from the sale of your property, then there is no income tax. However, if you take control of the cash or proceeds from the sale of your property before the 1031 exchange is complete, then the 1031 exchange may be disqualified and your capital gains may have immediate tax consequences.
- Report to the IRS about your transaction which is most likely on IRS Form 8824 with your tax return.
1031 Exchange Property Requirements and Rules
Let’s explore the key rules and requirements that investors must adhere to in order to successfully defer capital gains taxes.
Property Requirement
- The relinquished property and the replacement property must be “like-kind. For example, you can exchange a residential property for a commercial property, vacant land for an apartment building, or even a farm for a shopping center. The key is that both properties must be held for investment or used in a trade or business. Property such as your primary residence, second home, and vacation home typically does not count.
- Security or financial instruments such as stocks, bonds, debt instruments, partnership interests, inventory, or certificates of trust are not covered by Section 1031.
Timeline and Deadline
The IRS imposes strict timelines that investors must follow to complete a 1031 Exchange.
- 45-Day Rule: Upon selling your relinquished property, the clock starts ticking. You have 45 calendar days from the sale closing date to identify potential replacement properties that you wish to acquire in the exchange. This 45-day window is strict, and it is crucial to adhere to this timeline to preserve your tax-deferral benefits.
- 180-Day Rule: After selling your relinquished property, you have a maximum of 180 calendar days to complete the exchange fully. This timeline includes both the 45-day identification period and an additional 135 days to close on the chosen replacement property or properties.
Identification Rules
During the 45-day identification period, an investor must follow one of the following identification rules:
- Three-Property Rule: Identify up to three potential replacement properties, regardless of their market value.
- 200% Rule: Identify any number of replacement properties as long as the total fair market value does not exceed 200% of the relinquished property’s fair market value.
- 95% Rule: Identify any number of replacement properties, with the intention to acquire at least 95% of the fair market value of all identified properties.
Note: The Tax Cuts and Jobs Act of 2017 eliminated the possibility of performing a 1031 Exchange on personal property, limiting exchanges to real property only.
Different Types of 1031 Exchange
- Delayed Exchange: This is the most common type of 1031 Exchange. In this scenario, the investor sells their relinquished property first and then identifies and acquires the replacement property within the specified timelines. The intermediary holds the proceeds from the sale until the acquisition of the replacement property is complete.
- Reverse Exchange: In a reverse exchange, the investor acquires the replacement property before selling the relinquished property. This type of exchange requires meticulous planning and coordination, as the IRS does not allow an investor to hold both properties simultaneously. The investor must use a qualified intermediary and an Exchange Accommodation Titleholder (EAT) to hold either the relinquished or replacement property until the exchange is completed.
- Build-to-Suit Exchange: In certain situations, an investor might not find a suitable replacement property on the market. In such cases, they can use a build-to-suit exchange. The investor can purchase a replacement property with an improvement or construction component. The improvement or construction must be completed within the 180-day exchange period to satisfy the requirements of a like-kind exchange.
Tips for a Successful 1031 Exchange
To make the most of your 1031 Exchange, consider the following tips:
- Work with a Qualified Intermediary: A knowledgeable intermediary will guide you through the process, ensuring compliance with IRS regulations.
- Conduct Thorough Due Diligence: Research potential replacement properties carefully to make informed decisions.
- Plan Ahead: Start early to find suitable replacement properties and avoid last-minute mistakes.
- Consider Professional Guidance: Consult with a real estate attorney and tax advisor to fully understand the implications and benefits of a 1031 Exchange.
Conclusion:
Congratulations! You’ve now learned the ins and outs of the 1031 Exchange, a fantastic strategy for real estate investors to defer taxes, diversify their portfolios, and grow their wealth. Remember, a successful exchange requires careful planning, compliance with timelines, and professional guidance. By following these steps and tips, you’ll be well on your way to mastering the art of the 1031 Exchange and propelling your real estate investments to new heights. Happy investing!
Wildfires Readiness : A Team Effort for Safety and Resilience
As high temperatures continue to persist, the threat of wildfires looms large for communities across the state. In the face of this growing risk, consumers must take proactive measures and join forces with organizations like the Department of Insurance to protect themselves and their properties. Commissioner Lara’s Safer from Wildfires initiative has laid out a comprehensive approach to wildfire resilience, emphasizing three layers of protection – for structures, immediate surroundings, and the community. In this blog, we will explore the steps individuals can take right now to prepare for wildfire risks and the collective efforts that can help create safer and more resilient communities.
PREPARING FOR FIRE RISK
The first line of defense against wildfires begins with individual preparedness. By taking a few simple steps, you can significantly improve your chances of staying safe and protecting your belongings.
- Perform a Home Inventory: Use your smartphone to create a detailed record of your belongings, including valuable items, furniture, and electronics. Store scans of important documents in an easily accessible online location.
- Safeguard Insurance Papers: Locate your insurance papers and keep them in a secure place. Alternatively, consider uploading them to a secure online location to ensure easy access during emergencies.
- Consider Comprehensive Auto Insurance: In wildfire-prone regions, comprehensive auto insurance can be a lifesaver, protecting your vehicle in the event of a wildfire-related incident.
- Create an Evacuation Plan: Collaborate with your family to develop a well-thought-out evacuation plan. Know the escape routes and emergency meeting points to ensure a swift and safe evacuation should a wildfire strike. Remember the Six P’s in case immediate evacuation is required.
DOING YOUR PART – THE SAFER FROM WILDFIRES APPROACH
While individual preparedness is vital, a truly effective defense against wildfires requires collective action. Homeowners can play a pivotal role in safeguarding their homes and communities by adopting the Safer from Wildfires approach. Here are 10 steps you can take to protect your home and potentially save on insurance (The first three are the low-cost steps you can take today):
- Keep Embers Out: Install non-combustible, corrosion-resistant metal mesh screens over attic vents (1/16 to 1/8 inch in size) to prevent wind-blown embers from entering your home.
- Clear the First 5 Feet: Create a defensible space around your home by removing flammable vegetation and replacing wood chips with stone or decomposed granite within a 5-foot radius. This acts as a barrier against the spread of fire.
- Be Safer Together: Communities can join the Firewise USA program, which encourages collective action to enhance wildfire safety. With a simple action plan, even small communities can make a significant difference in preventing wildfires.
- Class-A Fire-Rated Roof: Your roof is your first defense against wildfire embers. Ensure your roof is Class-A fire rated, meaning it provides the highest level of fire resistance. Roofs made of asphalt shingles, concrete, brick, masonry tiles, and metal shingles or sheets generally qualify. However, avoid wood shake shingles, as they lack the required fire-resistant rating. You can check the Office of the State Fire Marshal’s website for a list of tested and approved materials.
- Non-Combustible Exterior Walls: Ensure there is a minimum of 6 vertical inches of non-combustible material measured from the ground up and from any attached horizontal surface, such as a deck, to prevent embers from accumulating and igniting your walls. Noncombustible materials like brick, stone, fiber-cement siding, or concrete are recommended for this purpose.
- Enclosed Eaves: Installing soffits under your eaves can prevent heat and embers from getting trapped and igniting, providing an additional layer of protection. Use non-combustible or ignition-resistant materials when enclosing eaves.
- Upgrade Windows: Multi-paned windows offer better resistance to breaking during a wildfire, making it more difficult for flames to enter your home. Consider upgrading your windows with multi-paned glass or adding shutters for added protection.
- Clear Vegetation and Debris from Under Decks: Make sure to clear away vegetation, weeds, and debris from the area under your decks. Use noncombustible materials such as concrete, gravel, or bare soil in this space.
- Remove Combustible Sheds and Outbuildings: Move any combustible sheds, gazebos, accessory dwelling units (ADUs), open covered structures with solid roofs, dog houses, and playhouses to a distance of at least 30 feet from your home.
- Defensible Space Compliance: Stay informed about state and local laws requiring defensible space around your property. Trim trees, remove brush, and clear debris from your yard to create a buffer zone that helps reduce the spread of wildfire.
ADDITIONAL STEPS FOR COMMUNITY SAFETY
In addition to the Safer from Wildfires approach, there are other important steps to take:
- Swift Evacuation: When authorities issue evacuation orders, don’t hesitate. Be prepared to evacuate immediately and know what to do if you find yourself trapped in a dangerous situation.
- Stay Informed: Sign up for text alerts about wildfires in your area and be familiar with your community’s emergency response plan, evacuation orders, and designated evacuation centers.
- Support Your Community: Check in on friends and family, especially those who might need assistance during emergencies.
For more details, check these websites:
Prepare for Wildfire – Ready for Wildfire
Learn how to Start a Firewise Community
References:
California Department Insurance. URL: www.insurance.ca.gov
Office of the State Fire Marshal. URL: www.osfm.fire.ca.gov
