Homeowners insurance is a type of property insurance that covers the physical damage to a home and its contents, as well as the liability associated with owning a home. Having homeowners insurance is not required by law in California, but if you are taking out a loan, your lender will require a certain amount of insurance coverage.

So what does the news about State Farm and Allstate mean for you if you are planning on buying a home? Well, it means you need to plan early. When you find a home you are interested in, find out how much it would cost to insure it before you make an offer. Make sure the home can be insured before you make an offer. 

If you are unable to find an insurance carrier to cover the home you wish to purchase, you can investigate the California Fair Plan.The California Fair Plan is a property insurance program that provides basic fire insurance to homeowners who cannot obtain coverage through the private market. The California Fair Plan is a last resort for homeowners who cannot obtain coverage through the private market and are typically more expensive than traditional plans. 

When buying a new home, it’s a good idea to start thinking about homeowners insurance from the beginning. Make sure you understand how the policy you choose will impact your monthly payments. Determine the insurability of a home before you make an offer so you can rest easy once you are in escrow.