So, in general, home insurance is required by mortgage lenders. I wonder if corporate real estate companies (e.g. Blackrock) are going to buy these uninsurable homes (in cash, ergo no mortgage). Too much risk, or count on the government backstopping it because they always bail out corporations?
I think it’s going to change the face of real estate, not for the better.
traditional mortgages will be gone, black rock can swoop in and buy up the ashes for peanuts and use their access to non traditional financing to put up cheap housing and force renters to purchase their in-house fire insurance products that, reading the small print, don’t cover hardly any belongings/possessions and dump all the liability on the occupant. so, in effect the renters are paying rent + premiums on fire insurance that only gets used to rebuild the houses when they evitably burn down.
or some shady shit like that, and probably localized to the neighborhoods in highest demand for worker housing.
no clue whats gonna happen with beachfront premium property. cheaply built short term rentals?
Eh. In Malibu and Pacific Palisades the local nimbys will probably prevent anything like that unless they get a big kickback. I expect those towns will just be rebuilt even richer by people who are wealthy enough to not need financing and therefore not required to have insurance.
And I imagine LA city government will bend over backwards to install some sort of wildly expensive gadget meant to be like “Iron Dome for wildfires” that will probably be as effective as the original.
So, in general, home insurance is required by mortgage lenders. I wonder if corporate real estate companies (e.g. Blackrock) are going to buy these uninsurable homes (in cash, ergo no mortgage). Too much risk, or count on the government backstopping it because they always bail out corporations?
I think it’s going to change the face of real estate, not for the better.
traditional mortgages will be gone, black rock can swoop in and buy up the ashes for peanuts and use their access to non traditional financing to put up cheap housing and force renters to purchase their in-house fire insurance products that, reading the small print, don’t cover hardly any belongings/possessions and dump all the liability on the occupant. so, in effect the renters are paying rent + premiums on fire insurance that only gets used to rebuild the houses when they evitably burn down.
or some shady shit like that, and probably localized to the neighborhoods in highest demand for worker housing.
no clue whats gonna happen with beachfront premium property. cheaply built short term rentals?
Eh. In Malibu and Pacific Palisades the local nimbys will probably prevent anything like that unless they get a big kickback. I expect those towns will just be rebuilt even richer by people who are wealthy enough to not need financing and therefore not required to have insurance.
And I imagine LA city government will bend over backwards to install some sort of wildly expensive gadget meant to be like “Iron Dome for wildfires” that will probably be as effective as the original.