House insurance rates in California are going up even though home values may be going down. It is important to look at your coverage from time to time to be certain you have all the insurance you need or that you are not carrying more than you need. You also want to be sure you are not paying too much for what you have. It is important to shop for insurance the same way you would for any important product.
Insurance companies in California are allowed to set their own rates subject to California Department of Insurance approval. This means there can be a variation in what each company charges. Some companies may suffer more losses than others and that can cause them to raise their rates in an area.
When looking at companies it is important to look at their policies and make sure you are comparing the same items and not just shopping price.
As rates change it is important to know you have a company that is looking out for you. Your insurance agent or broker should be your advocate, not just a company who collects your premiums. A good agent will make sure not only that you have all the coverage you need, but that you understand your policy including what is included and what is excluded.
Whether you are buying a new home or already have a home, your house insurance in California may have different requirements or specific needs to cover you, than other areas of the country. Most lenders have requirements as to what you will have to carry in the form of fire insurance.
There are many factors that determine the cost of insurance including the location. Insurance companies consider and weigh the risks if the house is in or near an area known to be subject to fires or floods. The quality and closeness of the fire department, the age of the building and the type of construction materials can all be factors in your costs.
Although earthquakes, earth movement and termites are a major concern in many areas of California, these are not generally covered by a basic insurance policy. You have the option of getting additional insurance to cover these, but not all companies will provide this type of coverage.
Generally a basic policy will cover the loss of your house value, detached structures on your property, the contents of your home including most personal property and loss of use of your home in the event it is not inhabitable due to covered damage. This will usually provide you with temporary housing, storage, and meals.
Some personal property may not be covered for loss and may require additional insurance. Some of these items might be valuables beyond the insurance policy limits such as jewelry, furs, antiques, collectibles or fine art.
Other coverage to consider would be for theft or vandalism. Most companies provide limited liability insurance in the event someone is injured on your property. This would cover medical costs but may or may not cover you in the event of a lawsuit.
You may opt to use the services of a broker who can help you choose from a number of different companies. If the broker receives a commission from the insurance companies, they are required by law to give you full disclosure.
However you choose to obtain your house insurance, you want to be sure you are getting the best service and coverage possible without overpaying. You can check any insurance companies’ history at the California Insurance Commissioners site online.
