California Home Insurance – How to choose a home owners policy in California

Two Parts to Homeowners Insurance
Most California Home insurance policies are divided into two coverage parts- home insurance property protection and home insurance liability protection. Property protection insures the dwelling, other structures attached to or on the property, and the personal property found within the walls of the home or structures. Liability protection offers financial assistance in the event that a claim is filed against the homeowner for an accident or bodily injury occurring on the property.
Optional California Homeowners Insurance Benefits
In addition to basic property and liability protection, many California homeowners select optional coverage amounts for added financial protection. Some of these options include
• Replacement Cost Coverage- This offers capital to rebuild your entire property in the event that it is lost to natural disasters.
• Extended Replacement Cost- In the event that your construction costs are inflated above the initial replacement estimate, this benefit adds between 20-25% to the pool of funds for use.
• Inflation Guard- This causes your coverage amount to increase annually with inflation, ensuring that your coverage increases as your property values do, offering you maximum financial protection.
• Scheduled Personal Property- For valuable items such as furs, collectibles and jewelry, this benefit allows the property owner to individually list their values for replacement. There is normally not a deductible for this insurance rider, but there is an added cost depending upon the quantity and replacement value of the items listed.
• Secondary ResidenceVacation Property- If the homeowner wants to insure additional properties under the same policy, this feature allows it to occur and often offers a discount to the policy owner.
• Additional Theft Coverage- This homeowners insurance option often offers financial protection against theft for personal property such as automobiles and boats stored on the primary property.
Choosing a Homeowners Insurance Company in California
Now that you know what to look for when shopping for a California homeowners insurance policy, it is time to review available insurance companies to determine which one is the best protection for your property. One of the first things you should review about each insurance company is their financial strength, as you want to select a company that will be there in the event that you need to file a claim in the future.
Armed with information, you are ready to begin shopping for your California homeowners insurance policy. Once you have chosen your initial insurance company and policy, it is recommended to review your coverage amounts and pricing annually to ensure that you are getting the best coverage, at the most affordable rates.