Best Homeowners Insurance Agencies in Chico

Frequently Asked Questions

• Introduction

  Homeowners' insurance is a type of property insurance used by private property owners to protect their home and property from a range of risks and liabilities. It is also called home insurance.
  

  
  

  All homeowners' insurance policies cover the primary home on a property, meaning that most damage from weather, accidents, vandalism, and other events will be at least partially paid for by the insurance company. Many policies also include coverage for other structures, personal property, and some premises liability.

  
  

  It is not required by law that a homeowner purchases insurance for their property. However, if you have a mortgage, the lender will usually make purchasing a homeowners' policy a mandatory part of the loan process. Since the mortgage lender is essentially selling you the home, they require you to protect the investment.
  

• Does a standard homeowners' insurance policy in Chico cover all types of accidents and damages?

  No. In Chico, a standard homeowners' insurance policy generally provides coverage for property damage, theft-related loss of valuable items, living expenses in case of total loss, and medical costs for non-residents injured on the property. Additional coverage for natural disaster damage like floods and earthquakes, or safeguarding second homes, can be obtained separately. It is advisable to communicate your desired inclusions to your agent.

• Is homeowners' insurance applicable to landlords in Chico?

  No. Standard homeowners' insurance in Chico is not tailored for rental properties. This means that landlords acquiring such coverage could face claim denials since it is the wrong policy. To address this gap, there exists a dedicated insurance option for rental property owners known as the dwelling fire or landlord policy. This policy assists with expenses, provided the property remains unoccupied for no more than 30 to 60 days.

• Is there a homeowners' insurance plan that covers fire damage in Chico?

  Yes. The California FAIR (Fair Access to Insurance Requirement) Plan is a state-required insurance scheme offering fundamental fire protection to Chico's high-risk homeowners. It aids those facing difficulties securing insurance from preferred providers. This initiative operates within a collective market, involving licensed insurance companies who distribute the risk for Chico homeowners who are ineligible for standard coverage.

• What is the average homeowner insurance cost in Chico?

  In Chico, the average insurance cost is approximately $796 for a median home valuation of $295,600. This figure fluctuates due to different elements, such as the deductible, house age, and construction style. Proximity to a public safety facility or the presence of a swimming pool can further increase or diminish the cost.

• What impact does the rise in construction expenses have on individuals holding homeowners' insurance policies in Chico?

  The increase in construction expenses directly impacts Chico's policyholders, as it leads to higher homeowners' insurance claim costs. The National Association of Home Builders (NAHB) reports a 67% surge in lumber prices since early 2021, making household construction more expensive. This could result in the current policy limits and coverage provisions being insufficient to provide adequate support for homeowners, leaving them financially exposed in case of a loss.

• What determines the price of homeowners insurance premium?

  The premium, or monthly cost, of your homeowners' insurance policy depends on several factors, including the value of your home and amount of coverage you choose. Your credit history and whether the property is in a higher risk area also play a role.