Best Homeowners Insurance Agencies in Merced

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.
  

• What are some of the legal requirements for hiring an insurance broker in Merced?

  You must agree to the fee after full disclosure and sign the Broker Fee Agreement, which includes standard information, with the insurance broker. The broker in Merced is also required to post a bond with the California Department of Insurance and is not the insurance carrier's designated agent. Additionally, a broker's fee should not be charged on a FAIR Plan.

• Where can you obtain wildfire insurance in Merced if you cannot find one in the traditional market?

  Check the Surplus Line Association of California for policies that insure homes that are at high risk of wildfires or have a history of multiple claims. You can also get one from the California FAIR plan, a state-mandated provider that serves homeowners who have been denied coverage in the traditional insurance market. These companies can provide standard homeowner's insurance as well as wildfire insurance to Merced residents.

• Does it cost much to get an earthquake insurance in Merced?

  Earthquake insurance premiums in California range between $500 and $1,000 for a $100,000 dwelling coverage. This is in addition to your standard homeowner's insurance. So, if a home in Merced costs $400,000 to rebuild, the policyholder must purchase insurance that costs $2,000 to $4,000 per year for the insurer to provide this much coverage. Deductibles, as well as the location, foundation type, and age of the home, are all factors that influence premium costs.

• Can you still file a homeowner's insurance claim in Merced even if you do not have a police report for a burglary?

  If you file a homeowner's insurance claim, your insurance company will most likely request a police report. To report a burglary, call the Merced Police Department at 209-385-6905 or go to the station at 611 W 22nd Street, Merced, CA 95340. You can pick up a copy of the police report at the station or call the records division at (209) 385-6912 for more information on how to obtain a report.

• How can you avoid a homeowner's insurance claim in Merced to be denied?

  Pay your premiums on time to avoid having your homeowner's insurance claim denied. It is also critical that you adhere to filing deadlines and submit clear and detailed documentation. If you do not notify your insurance company about any home additions or renovations, they will deny coverage for these changes. Finally, never neglect to maintain your Merced home because damage that could have been avoided will almost certainly not be covered by your insurance.

• 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.