Best Homeowners Insurance Agencies in Orange

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.
  

• Are Orange loan borrowers required to have homeowners’ insurance?

  Those in Orange who wish to purchase a residence through a home loan are required by California law to have homeowners’ insurance. Their policy must have a dwelling coverage minimum of $200,000, a $1,000 minimum deductible, and a $100,000 liability coverage minimum. However, the hazards that the policy covers may depend on the insurance provider.

• What are the average annual insurance premiums for Orange homeowners?

  Homeowners in Orange and the rest of the state pay an average insurance premium of $1,434 a year to cover $360,000 in damages, which is lower than the national median of $1,963. In fact, California ranks 37th highest in homeowners’ insurance rates nationwide. However, most homeowners’ insurance policies in the state do not cover flooding and earthquakes.

• How do wildfires affect Orange homeowners’ insurance policies?

  Because of severe wildfires in Orange and across the state, insurance providers such as State Farm and Allstate have decided to halt writing new policies in California as of 2023. Meanwhile, some homeowners’ insurance policyholders have been receiving cancellation notices or have been forced to pay more. While the California FAIR Plan offers an alternative to traditional homeowners’ insurance, it is also much more costly.

• Are there insurance discounts for Orange fire-safe homes?

  Through the California Department of Insurance’s Safer From Wildfires initiative, those in Orange with fire-hardened homes may be eligible for homeowners’ insurance discounts from participating providers. To qualify for these discounts, one may take certain wildfire preparedness actions such as installing fire-rated roofs, ember and fire-resistant vents, and enclosed eaves.

• What are the resources available to Orange homeowners’ insurance shoppers?

  Those in Orange who are shopping around for a homeowners’ insurance policy may utilize the California Department of Insurance’s comparison tools for different premiums and coverages, which can be found at their website. They have also published data on the number of justified complaints insurance providers in the state have received.

• 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.