Tracy Hills is a development that had been on hold for decades and then took off like wildfire in the past few years. A beautiful community with great amenities and close proximity to the Bay Area that has become very popular. However, it has become a bit hard to insure due to it’s rapid growth, location and current insurance market conditions.
In this post I will share some important insights regarding the insurance landscape in Tracy Hills that developers and real estate agents might not fully disclose, along with steps you can take to protect your investment.
While developers have implemented excellent wildfire prevention measures, the community faces specific challenges that affect insurance availability and coverage.
Here’s our list of the top 3 concerns:
1. Fire and Smoke Risks: Limited egress routes caused significant challenges during the June 2024 “Corral”brush fire. Additionally, the close proximity of homes creates a potential “domino effect” during high Altamont winds and has led to increased litigation for smoke damage, making insurers hesitant to offer terms in areas similar to this development.
2. Water Leaks: New tract homes are prone to slow water leaks or slab leaks. Because insurance only covers sudden and accidental damage, slow leaks are often excluded. We strongly recommend installing a water leak detection system, such as Moen’s Flo Shutoff, to prevent uninsured losses and reduce premium costs.
3. Landslides and Fault Lines: Tracy Hills sits near the Corral Hollow Fault. Ground movement and landslides are not covered by standard homeowners insurance and require separate Earthquake and Flood policies.
To ensure you are properly protected, we recommend that you adjust your homeowners to include these coverage enhancements and avoid 2 very common mistakes:
– Water Backup: Covers damage from sewage backing into the home from the street.
– Service Line Coverage: Pays to repair ruptured underground utility lines (gas, electric, water) on your property.
– Code & Ordinance: Covers the cost to bring your home up to current building codes during repairs after a covered loss.
– Water Damage Endorsement: Essential for ensuring coverage for hidden leaks, as many specialty insurers now exclude standard water damage.
– Unearned Discounts: Ensure your policy is audited correctly; unverified discounts added by salespeople can render your policy void during a claim audit.
– Deductibles: We advise opting for a higher deductible. Submitting small claims (e.g., fences, minor leaks) often results in non-renewals or rate increases, whereas major accidental claims (e.g., kitchen fires) do not typically jeopardize your standing.
Beyond being properly insured, here are steps to take to help minimize your losses:
1. Have a plan — Living anywhere that is close to open land or wilderness requires proper preparation. Since we cannot prevent the next brush fire we must always have a family plan in place. Emergency supplies, an escape route, a meet up point. Here’s a link to a Disaster Readiness plan.
2. Upgrade your landscaping – Look into fire smart landscaping to prevent fire damage to your property. Here is a helpful link to Ready For Wildfire.
3. Make sure your policy is updated — Have a doubt, ask questions, get responses in writing, get opinions from other experts. Always make sure you know what’s not covered on your insurance policy so that you are prepared and never miss an annual policy review.
4. Keep documented proof — Photos, reports, and service receipts can help expedite the claims process after a loss. We recommend keeping a digital copy, such as in an email format. So that you can easily access it while away from home.
At TCS Insurance Brokers, we’re here to help California homeowners protect their assets in a challenging insurance landscape. Whether it’s shopping for better coverage, advising on risk management, or connecting you with reliable service providers, our team has you covered.
If you would like us to review your current policy or help you compare options to ensure you do not have these critical gaps, please reach out. —proactive steps today can save you stress and money tomorrow.
Blog post written by Domingo Ramos, CA Lic. 0F53636, National Producer Number 9071660
Need help you with Home Insurance?
Simply Complete a formal quote request on our get a quote page and I or one of my amazing licensed brokers will reach out with a solution that meets your needs.
