Last week, my office hosted a panel discussion on the hot topic of homeowners insurance. In the wake of several natural disasters, supply chain issues, and inflation on building materials, homeowners insurance is currently experiencing a “hard market”. Non-renewal and cancellation rates are rising, some carriers are leaving certain states, and specific aspects of a home, like wood-shake roofs, are being more scrutinized. This has caused coverage to increase in cost and, in some cases, not be available. We assembled this panel to get this critical real-time information in front of our clients, so they can adequately care for their home(s).

As your trusted real estate advisor who helps you transact when it is time for a move, I also see it as my role to help you protect your asset through education. While I am not an insurance expert, the esteemed panel of insurance professionals we invited to discuss the state of the homeowners insurance market is an example of a trusted advisor in the homeowners insurance field. Below are my top takeaways from the hour-long guided discussion. You can also access the event recording below, which also includes 30 minutes of Q&A from the audience.

What is RCV (Replacement Cost Value), and why is it important?
RCV is the dollar amount established to determine the cost of rebuilding your home to its pre-damage condition. This is different from market value, which includes the land and location premiums. RCV estimates the cost of materials and labor to restore or rebuild your home at today’s prices. This number is critical, and that is why it is important to always let your carrier know when you have made changes or improvements to your home. NOTE: Some carriers use ACV (Actual Cost Value), but this is not preferred as it takes into account depreciation.

Request an annual review of your policy with your carrier.
Most carriers have some built-in annual coverage adjustments, but they are often insufficient. The homeowner is responsible for reporting upgrades, additions, and improvements to their carrier so the increase in investment translates to coverage. Record-keeping of invoices and receipts helps establish accurate replacement value. Notifying your carrier of these changes will capture the appropriate coverage.

Request and review the Declaration Page in your policy.
The declaration page in your policy provides a detailed overview of your coverage. It lists what is covered, the RCV, notes additional riders, and outlines your premiums and deductibles. This is a valuable tool for helping you understand your policy and ensure that everything you have done to your home is included. You can easily request this from your carrier, and it should lead the discussion at your annual review.

Coverage vs. cost matters!
Carriers often advertise and try to appeal to customers based on the affordability of their rates. While no one wants to overpay for insurance, you must analyze the cost-benefit of adequate and complete coverage over the cheapest policy. Oftentimes, the cheapest premiums will lead to your home being underinsured.

Consider adding specific riders for additional coverage.
Unfortunately, earthquake and water backup riders are not included in your basic policy. However, you can purchase these specific riders to add them to your policy and be covered should damage be caused by an earthquake or your sewer line backing up into your home and causing a flood. Adding riders for personal property, such as fine jewelry, is common. These will be listed on your declaration page for an easy accounting of your coverage.  Make sure you ask your insurance professional what other rider options are available, so you don’t miss something you would like covered.

Align your deductible with your claim tolerance.
You want to analyze at what point you would make a claim if something happened to your home.  The theory of only making a claim if the repair or replacement amount is catastrophic is a good rule of thumb to ensure your policy is not dropped, non-renewed, or wildly increased in premium. What is catastrophic for one person may not be for another, so it is a personal preference around your financial comfort. What you don’t want to have happen is to make a claim on something you could handle on your own, and then have something big happen and no longer be covered. Always consult your insurance professional off-the-record before contacting the carrier directly, so your decision-making is not misconstrued as a claims risk.

Maintain your home to protect your premium.
Due to the industry’s tight margins, many carriers are visiting properties and performing drive-by and/or drone inspections to help determine their risk exposure. They are also accessing Google Earth to make these determinations. Homes that do not appear well-maintained are penalized with premium increases and sometimes dropped by their carriers. This is also why opening and reading all mail from your insurance carrier is essential.

The home and the human are considered in the coverage.
The home’s condition will play into the coverage and premiums, as will the human who is purchasing the policy. Carriers will examine a person’s claims history to help determine their risk exposure. It is common to look back 36 months, and if a person has multiple claims in that timeframe, they will have higher premiums and, in some cases, not be able to purchase coverage.

Have a good relationship with your insurance professional.
Whether working with an insurance broker or a captive company, having a consistent relationship with your provider is valuable. They should be available to answer questions, help you decide whether to make a claim, and review your policy and riders annually. You should never call the carrier directly without first contacting your insurance professional. They can help you navigate important decisions that will keep your coverage intact and your premiums manageable.

I hope you found this information useful—I know I did! It drove home my responsibility of managing my policy and ensuring I am adequately insured through communication with my insurance professional. Much like real estate, having a trusted advisor regarding homeowners insurance is crucial. After all, our home is often our largest asset and most prized possession. Protecting it is critical!  Click HERE to access the recording (Passcode: E+gmk9V*) to watch the panel discussion.

As always, please don’t hesitate to reach out if you have any questions or concerns about your property, and I can help guide you to the right answers. I have reputable referrals to multiple insurance professionals that can help you should you need additional contacts. My goal is always to help keep my clients informed and empower them to make strong decisions.

As your trusted real estate advisor, my service to you is beyond the transaction of buying and selling real estate. Your home is your nest egg and often your most significant financial investment, requiring care and attention to maintain and protect it. An important aspect of protecting your home is your Homeowners Insurance Policy. In the wake of several natural disasters over the past five years, insurance carriers have depleted their reserves and had to recalibrate their risk management plans. Carriers have mitigated their risk by analyzing which areas of the country have the highest likelihood of claims, as well as which consumers have the highest claim rates.

The heat map below illustrates the rate of cancelled policies nationwide based on risk, weather patterns, and claims history. Beyond available coverage, it’s essential to understand the scope of your policy and the riders that accompany it. That is why it is essential to have an annual review with your insurance provider, ensuring you are adequately covered and updating your Replacement Cost Value (RCV) as needed.

Furthermore, some carriers are revising their policies, including the states in which they will operate and the products and materials they will insure. For example, in 2025 Safeco/Liberty Mutual will stop writing new policies for condominium, renters, and watercraft insurance in the state of California. This month, they are also capping umbrella limits to $1 million in some states, forcing renewals to lower that level if they had a higher coverage amount. No company is immune to these effects, so it is important to explore your options for the most complete coverage. It is also essential to review all mail from your insurance providers as renewals approach, so you don’t miss any significant changes.

Although I am not an insurance professional, I have connections to some credible insurance professionals who can help you better understand the changing climate. Join me on May 7th for a live webinar featuring a panel of experienced insurance professionals who will share their insights and expertise on today’s rapidly evolving homeowners insurance market.

Windermere North is proud to host this educational webinar, featuring Peter Hong of Allstate Insurance, Alex Busilacchi of Moreland Insurance, and Douglas Olsen of USI Insurance Services.

The first hour will be a guided conversation covering key points and will provide information to shed light on how the volatile environment affects you and the protection of your home. Then we will open up for a live Q&A so you can get your questions answered.

Click the link below to register and receive the Zoom link, or reach out and I can send the registration link to your email. Registration closes May 4th.

As we head into Q2, I wanted to review preliminary Q1 stats in order to report the latest trends in the market. The spring market has sprung, and activity is positive on both the seller and buyer side. The two charts above show key market factors from two points of view, March 2025 over February 2025 (Month over Month, MOM) and Q1 2025 over Q1 2024 (Year over Year, YOY).  By looking at MOM, you can see the real-time progression of activity as we head into the busiest time of year in the real estate market, and the YOY look compares how 2025 is starting in comparison to 2024.

MOM new listings made a big jump up, days on market are shrinking, list-to-sale price ratios are slightly rising, and prices are maintaining and appreciating. Inventory remains tight despite the increase in new listings, with all six market areas sitting at a Seller’s Market (0-2 months of inventory). This indicates strong buyer demand that is absorbing the selection despite the slow decline in interest rates. We anticipate a strong spring market with more opportunity than 2024 provided for buyers, which is a welcome change.

The second chart shows that in Q1 2024, inventory was much more constricted in comparison to Q1 2025. The limited inventory last year created intense upward pressure on prices when rates were even higher than they are now. We are maintaining home values and growing at a slower pace than last year, which will be more sustainable. With affordability at an all-time low, this is good news for buyers. Sellers are still making incredible gains as price growth has been phenomenal over the last decade, and YOY, it is looking positive. With real estate being a long-term hold investment, many sellers are enjoying favorable returns when they decide to make a move.

Overall, the start to 2025 is taking on typical seasonal patterns. We have seen a quarter-point dip in interest rates, more selection, continued buyer demand, and sizable seller equity. If you are curious about how the trends relate to your real estate goals, please reach out. It is always my goal to help keep my clients informed so they are empowered to make informed decisions.

At press time, these figures accounted for the majority of March closings outside of the last two days. They still tell the story of the trends, so I was anxious to get them out. If you are on my physical mailing list, you will receive finalized numbers later in the month for your specific market area. Please let me know if you’d like to receive consistent quarterly reports, and I will add you to my snail-mail database.

Last month, my office invited a panel of insurance professionals to discuss the volatility of the Homeowner’s Insurance (HOI) market so we could learn the latest to best inform our clients. In the wake of several natural disasters, the LA Fires is one of the most recent, HOI companies have become much more scrutinous and expensive. The increase in natural disasters such as flooding, wildfires, hurricanes, earthquakes, landslides, tornadoes, and extreme cold snaps have accelerated losses and depleted their recovery funds. This has caused carriers to increase premiums, limit coverage, and, in some cases, cancel policies.

Hearing of the neighborhoods in the Palisades Fires that were canceled or not renewed by their carriers just weeks before the fires, motivated us to want to learn more to help educate our clients so they are equipped to be protected. After all, we help people secure their most significant asset; we want to empower them to protect it adequately as well. On the evening of May 7th at 6:30 pm, my office is hosting a virtual webinar event for our clients featuring the same panel of insurance professionals (see the link below to register; registration closes on May 4th). There will be two insurance brokers and one captive company agent from Allstate who will spend an hour answering questions about the current market.

For an hour, they will be led by a moderator to provide tips to ensure you are properly insured, highlight what to look for in your carrier’s contracts, explain which riders to a contract are most effective, and go over when it is appropriate to make an HOI claim and when you should not. All of this will help educate homeowners so they are empowered to make informed decisions about their coverage and costs and hopefully not find themselves in a situation like the victims of the LA Fires. We will then open it up for 30 minutes of Q&A and provide follow-up materials. I hope you can make it! Registering is easy with the link below, and you can also contact me directly to talk about the event and the topic overall.

In the meantime, here are a few things you can do now to evaluate your current coverage:

• Make an appointment with your insurance agent/broker to review your policy. This should be done annually.
• Reevaluate your policy after making any upgrades to your home.
• Add an inflation endorsement to your policy.
• Build a relationship with your agent/broker.

Here are a few important elements to focus on to ensure adequate coverage:

• Replacement Cost Value (RCV): The amount of money needed to repair your home at today’s prices of building supplies or to replace your belongings at today’s cost of a similar or like item. It is important to discuss replacement costs with your insurance agent/broker when purchasing your policy. This is the figure that dictates the completeness of your coverage.
• The cheapest policy is not always the best policy. Often, the most inexpensive policies lack the coverage you desire. Make sure to dig deep into the details and evaluate your RCV and deductible.
• What exclusions are in your policy contract? You don’t want to find out after making a claim that you are not covered because of an exclusion. You may need to add specific riders to expand your coverage.
• Be aware of what activities would void your coverage. For example, leaving your home vacant for more than 30 days often voids coverage without a vacancy rider. Snowbirds who winter in the sunshine should be keenly aware of this.
• Understand the balance between your deductible and a claim amount. Making a claim could increase your premium or even get you canceled. Analyzing the impact of a claim and weighing the cost/benefit is key. If you can afford to pay for the repair on your own, it might make sense not to make the claim.
• If you are a renter or own a condo, what policies should you have to protect your belongings? Renters need a renter’s policy to cover their personal belongings should something happen to the structure such as a fire. Additionally, condominium associations have a master policy that covers common areas and exterior elements. Condo owners should have personal policies to cover what the master policy doesn’t cover, along with their personal belongings.

These are just a few things to get you started on an HOI audit. If you need any referrals to reputable insurance agents or brokers, please let me know. While HOI is not my direct area of expertise, I’m happy to connect you with professionals to help you better. I hope you can attend the virtual panel event on May 7th so you can learn even more. It will provide you with useful insights and create value for your investment. It is always my goal to help you stay informed about the value of your home, market trends, and how to protect your home. You can click on the link below to register or reach out to me directly and I will get you the link to attend.

As we start a new year, I am often asked where home prices are headed.  While I don’t have a crystal ball, I study the market trends and activity closely.  Many aspects affect home prices, such as the overall economy’s health, inventory levels (supply & demand), and interest rates.  Seasonality is also a pattern I pay close attention to, and we are headed into the time of year when we see most of the annual price growth happen.  As we prepare for the Spring market, I have pulled some data that shows the seasonal patterns and the impact interest rates have had on prices, and long-term equity growth.

First, before we look forward, we must look back to understand the relationship between rates and prices.  We went on a long run of rates being below 5% from 2010 to mid-2022, outside of the second half of 2018. Price growth was consistent after the recovery from the Great Recession in 2012 to 2018 and, in some cases, incredibly rapid.  When the increase in interest rates happened in 2018, along with the proposed Seattle Head Tax, we saw a correction in home prices.  It took the market about 15 months to recover from that correction.

Then, we hit the pandemic-fueled market of 2020-2022, where price growth was off the charts.  During that time, work-from-home moves flooded the suburbs and rural markets, early retirements and relocations to other states created movement, and interest rates under 3% drove prices up by double digits.  At the beginning of 2022, rates started to creep up to counter inflation and increased by 2 points in four months, landing at 5.5% in May 2022.  This, like 2018, forced a correction in prices.  This correction took 24 months to recover, with prices regaining their May 2022 peak in May 2024.

This recovery all happened amidst interest rates peaking at 7.91% in Oct 2023 and never going under 6% the entire time.  Rates have hovered from 6.75%-7.25% over the last year, outside of a small window in the Fall when they were in the mid-6%.  This illustrates that the market has become accustomed to the new normal of interest rates, and prices have been strong and stable.  Tight inventory has helped bolster price stability and growth with limited supply to fuel demand.

If you look at the recovery from May 2022 to May 2024, you must also understand the seasonality of the market.  This pattern has rung true for decades and has much to do with inventory levels.  We typically start the new year with the lowest amount of available homes for sale due to the holiday slow down, short, dark days, and many families timing their moves around the school year.  Once the new year starts, would-be buyers hit the market with their housing goals blowing wind into their sails.

This new demand is coupled with tight inventory, and the price growth for the year starts to take shape via price escalations via multiple offers.  This becomes commonplace in Q1, and we begin to see inventory catch up in Q2 when the days are longer, the flowers are in bloom, and we are a little closer to the opening of summer break for schools, creating a less disruptive move.  Despite the correction in 2022 and rates stubbornly remaining in the 6-7% range, sellers have realized incredible gains, and buyers who have made purchases have secured their trajectory of building wealth through owning real estate.

Even though price growth is more accelerated in the first half of the year, the deceleration of price growth sits on the shoulders of the gains in Q1 & 2, ultimately leaving prices higher year-over-year.  This is a pattern we have seen for some time, and we are already starting to see it unfold in 2025.  Month-to-date prices are up in February 2025 over January 2025 by 5% in King County and 1% in Snohomish County.  This pattern can guide one’s timing of the market, and so can life.  As much as hitting the perfect week when there is less competition and rates drop may feel like hitting your bet at the roulette table, making a move is much more nuanced than that.  The timing of a move needs to work with the demands of life, and the good news is the year-over-year gains are positive regardless.

As we head into the spring market for 2025, we anticipate additional price growth from where we are now and following the trend of prices peaking in late Spring.  We should regain and most likely eclipse the peak prices we saw in 2024.  To expand this to the bigger picture, let me share some fun facts about long-term price growth and homeowner equity with you.  This is especially important as real estate is a long-term investment, the four walls where you create your life, and not meant to be a lucky bet on black.

Check out the charts below that show how far prices have come over the last ten years!  In King County, the January median price is up 74% since 2016 and up 36% since 2020.  In Snohomish County, the January median price is up 103% since 2016 and up 51% since 2020.  Equity levels are high across our region, with over 50% of homeowners having 50% equity or more.  Many homeowners are in the fortunate position to reposition their equity into a home that is a better fit for their lifestyle if they are experiencing life changes such as a change in family size, job change, or a financial shift.

I hope this look back to look forward instills confidence in our real estate market and home values. If a move is in your future, you will prosper well.  Please reach out if you or someone you know is considering a move, whether it is a purchase, sale, or both.  I can help apply these facts and figures to your specific market area and help chart a plan according to the market conditions and your goals.  It is always my goal to help educate my clients and empower them with the information to make well-informed, strong decisions.

Reflecting on the joy of the holiday season always brings with it gratitude. One of the most important pieces of my business is working with an office that always makes it a priority to come together as a team throughout the year to lift up our neighbors in need and give back to our communities. Our collective gratitude runs deep, and spreading some love and support within our community is the best way we can celebrate everything we are thankful for.

This year our holiday food drive brought in $1,372 and 1,422 pounds of food for Volunteers of America Western Washington food banks. These numbers are all thanks to friends and clients like you. Thank you for your generosity! The current need in our area is high, and our local food banks need all the help they can get.

Next, we had the absolute joy of helping bring some Christmas magic to homeless/housing-insecure youth in our area. We partnered again this year with Washington Kids in Transition, who work with social workers in Edmonds School District schools (includes the communities of Edmonds, Lynnwood, Brier & Mountlake Terrace) to collect wish lists from homeless/housing insecure students living in shelters, tents, cars, transitional housing or other temporary housing and partners with the community to fulfill those wishes. The brokers in my office all came together and we adopted the wish lists of 24 local youth, who would have otherwise gone without this holiday season.

The rest of the year, Washington Kids in Transition provides emergency closets (coats, diapers, toiletries, etc.), hotel vouchers, utility assistance, rental deposits, and recently started a teen mentorship program. This new program is in high demand, but does not yet have reliable funding, so we decided to also raise funds for that as well over the holiday. We raised a total of $3,815 for this new program, which helps teens learn basic life skills as well as have fun activities they otherwise wouldn’t have access to.

Another holiday staple at my office is putting together volunteer groups at Christmas House and also Holly House this year. Both organizations are local non-profits (100% volunteer-run) that provide opportunities for qualifying, low-income parents to select free holiday gifts for their children. This is always an amazing time helping families in need have a joyful Christmas.

You can access any of the links above to learn more about these organizations or to donate yourself.  As we head into 2025, our commitment to giving back to the community that we serve will remain a cornerstone of our business. Here’s to a happy, healthy, and heartwarming 2025 and beyond.