Homeowners Insurance California
Updated On: October 7, 2011
If you purchased your home for all cash Home Owners Insurance is not required by law in California, if however; you purchased your home by means of finance it is more than likely your lender will require that you have a Home Owners Insurance California policy in place. Often if you do not the lender will place a policy in place on your behalf and add it to your mortgage payment, but in all likelihood it will only cover the replacement of the building and not the contents. Home Owners Insurance California is different to Renters Insurance, so make sure you have the correct policy.
When you take out your Home Owners Insurance California make sure you have assessed your home contents properly, as well as the replacement value, what you purchased a year ago for $100 may not cost a $100 today. Ask your agent if your policy covers you specifically for flood damage or if a tree should fall on your home as some policies do not cover incidents regarded as acts of God. Also check if your Home Owners Insurance California policy covers for emergency housing if you need to vacate the premises because of fire damage as well as rental furniture and appliances.
Home Owners Insurance California usually does not include earthquake insurance and is a separate policy, so because you have Home Owners Insurance California doesn’t assume you also have earthquake insurance. In times of stress when you have lost your home and its contents you do not need the added stress of not having enough Home Owners Insurance California or the wrong kind of policy.
There are many companies that offer Home Owners Insurance in California and you need to find the most reputable company available. There are different agencies that grade Home Owners Insurance in California and a lot of well known names to choose from but a in anything else you should research the company you choose. Home Owners Insurance in California is important, if you live in a fire hazard zone, or flood area you should always make sure your policy is in good standing and not expired. The last thing any home owner needs is to find out they have a disaster on their hands and their Home Owners Insurance in California is under insured or expired or does not cover the emergency at hand.
There a three different levels of coverage with a Home Owners Insurance in California: the first is a cash value policy, which just provides cash to replace your home and its contents but depreciation is taken into account so a deduction is made. The second is: Replacement cost, which will pay to rebuild your home or repair your home as well as replacing your possessions but again a deduction, will be made for depreciation. The third type of Home Owners Policy in California is Guaranteed or Replacement Cost which will cover the cost of rebuilding your home even if there has been an increase in building materials due the a disaster that has affected many homes. This policy may not be available if you bought an older home. To cover city ordinances you may have to take a separate policy to cover the necessary upgrades needed to protect you as this may not be covered in the guaranteed policy.