In this challenging insurance market, it is important for homebuyers to be proactive, diligent, and patient. Below are the five top tips for homebuyers in finding insurance:

Plan ahead and seek the assistance of insurance agents – Start shopping for insurance early! It takes time to complete applications and obtain quotes. When contacting agents, check to see if they work exclusively with one insurance company or has access to multiple carriers. Keep track of which insurance companies are being contacted to make sure there is a thorough search of all options. Use this tool from the California Department of Insurance for finding an agent or broker near you. 

Check for policies written by admitted insurance companies. It is only admitted insurance companies that are backed by the California Insurance Guarantee Association (CIGA). They must file their rates and policy forms with the California Department of Insurance (DOI) and, most importantly, they are part of CIGA, which provides protections if the carrier becomes insolvent. The DOI has a list of admitted insurance companies >. 

Compare types and limits of coverage, and feel free to ask questions. You can compare the types of coverage and limits using the DOI coverage comparison tool. Also remember to check whether the insurance company will lower the quote for fire hardening (e.g., clearing trees or brush around the perimeter, or having fire-resistant roof materials).

If coverage isn’t available through an admitted carrier, consider surplus lines (non-admitted) insurance. These carriers don’t file rates or forms with the DOI and aren’t part of CIGA, meaning no CIGA protection if the carrier becomes insolvent. However, they often offer more flexible options. Be sure to evaluate the carrier’s financial strength using a service such such as A.M. Best to determine whether it offers the best solution.

The Fair Plan is available as a last resort. If there are no other options, you or your insurance agent should contact California FAIR Plan at 1 (800) 339-4099. The FAIR Plan policy can be expensive, and it only covers certain losses caused by fire and smoke. For other perils such as theft and liability, consumers will need to buy Differences in Conditions (DIC) insurance to fill the gaps. List of DIC carriers >.

In this challenging insurance market, it is important for homebuyers to be proactive, diligent, and patient. Below are the five top tips for homebuyers in finding insurance:

Plan ahead and seek the assistance of insurance agents – Start shopping for insurance early! It takes time to complete applications and obtain quotes. When contacting agents, check to see if they work exclusively with one insurance company or has access to multiple carriers. Keep track of which insurance companies are being contacted to make sure there is a thorough search of all options. Use this tool from the California Department of Insurance for finding an agent or broker near you. 

Check for policies written by admitted insurance companies. It is only admitted insurance companies that are backed by the California Insurance Guarantee Association (CIGA). They must file their rates and policy forms with the California Department of Insurance (DOI) and, most importantly, they are part of CIGA, which provides protections if the carrier becomes insolvent. The DOI has a list of admitted insurance companies >. 

Compare types and limits of coverage, and feel free to ask questions. You can compare the types of coverage and limits using the DOI coverage comparison tool. Also remember to check whether the insurance company will lower the quote for fire hardening (e.g., clearing trees or brush around the perimeter, or having fire-resistant roof materials).

If coverage isn’t available through an admitted carrier, consider surplus lines (non-admitted) insurance. These carriers don’t file rates or forms with the DOI and aren’t part of CIGA, meaning no CIGA protection if the carrier becomes insolvent. However, they often offer more flexible options. Be sure to evaluate the carrier’s financial strength using a service such such as A.M. Best to determine whether it offers the best solution.

The Fair Plan is available as a last resort. If there are no other options, you or your insurance agent should contact California FAIR Plan at 1 (800) 339-4099. The FAIR Plan policy can be expensive, and it only covers certain losses caused by fire and smoke. For other perils such as theft and liability, consumers will need to buy Differences in Conditions (DIC) insurance to fill the gaps. List of DIC carriers >.