A hot topic-owning property in the mountains.

[Gayle Eisner]

Hi all:

I own a duplex in the Santa Cruz mountains, Los Gatos. Prices here are crazy high. I love the area/schools/great rental income BUT it is in a 100% fire zone-meaning high risk. Many of my neighbors have had their insurance cancelled & I expect at a minimum mine will be doubling. Last year I had to evacuate. There is a small  fire department close by but I don’t know if that really matters…With prices so high right now, should I jump ship & sell?  1031? Hang on? Or just sell & hold? Anyone else have experience with this problem?

[Steve Korn]

I own a SF with an ADU off Summit in Los Gatos. I recently did a complete remodel on the entire property and because of that my insurance just was cut in half by State Farm! My agent simply had my contractors sign off on a document stating the work done was legit. $2,700/yr for roughly 2M in coverage. I'd suggest looking for another insurance provider before unloading on a good cashflowing property.