Best Homeowners Insurance Agencies in Fullerton

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.
  

• Is there an insurance crisis in Fullerton?

  Fullerton and the rest of California have been experiencing an insurance marketplace crisis these recent years, as large insurers such as Nationwide, Allstate, and Farmers have scaled back or altogether stopped issuing new homeowners insurance policies. Experts attribute this to the California Department of Insurance’s Prop 103, which prohibits sizable insurance rate increases despite inflation and climate change catastrophes.

• How can Fullerton residents make their homes more insurable?

  In order to ensure that their homeowners’ insurance is renewed, residents of Fullerton may consider installing safety devices, such as fire alarms, leak-detection sensors, and smart thermostats. They may also make their homes more resilient to disasters by installing hurricane shutters, adding fire-resistant siding, and clearing vegetation to mitigate wildfire damage.

• Does Fullerton homeowners’ insurance cover wildfire damage?

  While most homeowners’ insurance policies in Fullerton cover wildfire damage, insurance companies have been raising prices or dropping policyholders because of the metro’s susceptibility to wildfires. In fact, California has seen more than 55,791 wildfires these past seven years, leading to $31.9 billion in losses for the insurance industry.

• What is the difference between replacement cost and actual cash value in Fullerton?

  Homeowners’ insurance policies in Fullerton that are based on replacement cost reimburse policyholders the full amount of what it costs to repair or rebuild their dwelling, as well as to replace damaged furnishings, appliances, clothing, and personal items. Meanwhile, actual cash value insurance pays out what the damaged property is worth at the time of the claim, taking into account depreciation costs.

• What are the limitations of Fullerton “forced-placed” insurance coverage?

  Those in Fullerton who can no longer afford their homeowners’ insurance will be issued a “forced-placed” insurance plan by their mortgage company in order to protect the loan. However, its coverage is only limited to damages to the main structure. Homeowners will not have any protections regarding loss of use or personal liability.

• 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.