Southwest Riverside County · What it actually costs to own here

A hard insurance quote does not have to kill a valley purchase, and the FAIR Plan is a real option.

Buyers and owners across Murrieta, Temecula, Menifee and Lake Elsinore report the same story: a standard carrier declines, and the FAIR Plan or a paired policy fills the gap at a higher premium. A lender needs proof of coverage before closing, not a promise.

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The answer

The direct answer

Getting a standard homeowners policy has become harder across the valley, and buyers in Murrieta, Temecula, Menifee and Lake Elsinore describe carriers declining coverage in higher-risk zones. The California FAIR Plan, sometimes paired with a supplemental policy, satisfies a lender’s insurance requirement, usually at a higher premium. Insurance pricing and availability are set by the carriers and the state FAIR Plan association, not by a mortgage broker, so a quote early in the process is worth more than an assumption.

What changes the answer

What is the California FAIR Plan?
Can I still get a mortgage if only the FAIR Plan will cover the house?
Is flood insurance separate from fire insurance near Lake Elsinore?
Who sets the price of my homeowners insurance?

Each one is answered further down this page, and any one can move the outcome on a specific file.

The local number: Multiple 2024-2026 threads across r/Menifee and r/Insurance flagged wildfire risk on Menifee’s west side as moderate and rising, with FAIR Plan enrollment and non-renewal notices described as a live concern for local homeowners.
Where it was reported: r/Menifee and r/Insurance community threads, 2024-2026 Reported in a public thread, not a rule. Confirmed on your file before you rely on it.
Last verified: September 1, 2026

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A stored answer tells you how the rule works. It cannot tell you what your file supports, because it has never seen your file. That part gets run on your actual numbers, and you keep the written version either way.

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Answered by Nick Nagy · 23 years · NMLS 314880 · CA DRE 01444600 · Mortgage financing through Loan Factory, 237 lenders · Run this answer against my numbers →

Part of the California Mortgage Answer Desk, and of the Southwest Riverside County questions.

How it works

Murrieta: the quotes that made buyers reconsider

One buyer in escrow described the wall directly: "I’m looking for a home policy for a home I’m in the process of purchasing in Murrieta. I got a No from AAA, which is who I have for my auto..." Another Murrieta owner described what replacing that standard coverage actually cost: "Currently live in Murrieta & We got a quote and together it was $7000 annually. a quote through bamboo + cal fair for 3800. Call 3-5 different..."

A third owner described the layered solution some Murrieta households end up with: "I live in Murrieta and have a 2800 sq ft home with solar and a pool. I have a FAIR plan and Mercury for DIC. On a valuation of $1,000,000 I..." Pairing the FAIR Plan with a difference-in-conditions policy from a second carrier is a common structure when a single standard policy will not cover the property.

The detail that matters

Temecula and Menifee: the same wall in different words

In Temecula, a realtor’s spouse described the same limitation in the higher-elevation La Cresta area: "My hubby’s a Temecula realtor. Recently sold a home in La Cresta. You have to have California First ( which is the only coverage you can get..." In Menifee, a buyer in escrow ran into a claims-history problem rather than a location problem: "I am currently in escrow for a property in menifee/sun city and am having a hard time getting quotes for home insurance due to a claim..."

Neither situation is unusual for this corridor. Wildfire-adjacent zones and prior claims history both push a specific address out of standard coverage and into the FAIR Plan or a specialty carrier, and it happens often enough that an experienced local lender expects to see it, not react to it as a surprise.

How it works

Lake Elsinore: the lake adds a second layer

A Lake Elsinore resident summed up the added complexity for homes near the water: "Yes Lake Elsinore has higher insurance policies, if you live close to the lake you need to get flood insurance and at the same time you’re also..." A lake-adjacent property in Lake Elsinore can carry both a fire-risk conversation and a flood-insurance requirement stacked on top of each other.

That combination is worth checking before waiving a contingency on any Lake Elsinore property close to the water, since a lender will require proof of both coverages, not just one, before closing.

The detail that matters

What the FAIR Plan is, and what is ours to help with

The California FAIR Plan is the state’s insurer of last resort, available when standard carriers decline to write a policy, typically because of wildfire risk in that specific area. It provides real coverage that satisfies a lender’s requirement, but the premium is usually higher than a standard policy, and it can require pairing with a supplemental policy for full protection.

Nick Nagy is a mortgage broker, not a licensed insurance agent. Which carrier a specific address qualifies with, and what that coverage will cost, is set by the carriers and the FAIR Plan association, not by us. What is ours: building whatever the real premium turns out to be into the actual qualifying payment, through the Murrieta True Payment Check, before you waive a contingency. For the property side of a purchase in a higher-risk area, Anthony Lauria works these streets; the financing side is mine.

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Where this question came from

Someone asked this in public

I’m looking for a home policy for a home I’m in the process of purchasing in Murrieta. I got a No from AAA, which is who I have for my auto
r/Temecula, captured 2026-09-04 (LH2 situation sweep)

If nobody gave a straight answer in that thread, that is not the person missing something. The answer depends on a specific file and a specific address.

Who answers

Nick Nagy

23 years in California lending · NMLS 314880 · CA DRE 01444600 · Loan Factory, Inc.

Dual licensed, so the loan side and the real estate side of a move get looked at as one problem instead of two. Most of what goes wrong in a move is a timing problem wearing a financing costume, and it is cheaper to catch it before you write an offer than after.

Financing is placed through Loan Factory, Inc. Real estate work is under CA DRE 01444600. More about Nick.

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The desk behind the file

One file, 237 lenders competing for it, and a broker who has done this for 23 years.

Loan Factory, Inc. is the brokerage. These are its published figures.

20,907+Loan Factory Google reviews

5.0Loan Factory average rating

237Lenders available through Loan Factory

48States Loan Factory is licensed in

A retail bank has one guideline book. A broker shops the same file across the shelf and finds the lender whose box it already fits.

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Straight answers

Questions people here actually ask

The follow-on questions, answered in the order they get asked.

I’m looking for a home policy for a home I’m in the process of purchasing in Murrieta. I got a No from AAA, which is who I have for my auto

A decline from a standard carrier like AAA is common enough in the valley that it is not a sign the purchase is in trouble. The next step is usually a California FAIR Plan quote, sometimes paired with a supplemental policy for fuller coverage, and getting that quote early, before you waive a contingency, lets the real premium be part of your payment math rather than a surprise near closing.

What is the California FAIR Plan?

It is the state’s insurer of last resort, available when standard carriers decline to write a policy, most often because of wildfire risk in that area. It satisfies a lender’s hazard insurance requirement, typically at a higher premium and sometimes with more limited coverage than a standard policy.

Can I still get a mortgage if only the FAIR Plan will cover the house?

Yes. FAIR Plan coverage satisfies a lender’s insurance requirement. The premium is usually higher than standard coverage, so it should be built into your monthly payment math before you commit to the purchase, not discovered after.

Is flood insurance separate from fire insurance near Lake Elsinore?

Yes. A property close to the lake can require flood insurance in addition to standard or FAIR Plan fire and hazard coverage. A lender will need proof of both before closing on a lake-adjacent home.

Who sets the price of my homeowners insurance?

The insurance carrier, or the FAIR Plan association if that is the coverage you end up with, sets the premium. Nick Nagy is a mortgage broker, not a licensed insurance agent, and does not set or quote insurance pricing.

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