In our last post, we discussed the different lines of coverage associated with auto insurance. This
time, we thought it might be beneficial to talk about another important line of insurance that we deal with regularly: homeowner’s insurance.
Homeowners insurance is what keeps your home and its contents safe in the event of disaster, theft, or accident. Homeowner’s insurance isn’t required by law like auto insurance is, but mortgage companies usually require you to show proof of a homeowner’s policy before they will give you a home loan.
While a typical homeowner’s policy protects your home and possessions from things like fire and fallen trees, your mortgage may require the purchase of additional coverage for earthquakes or floods depending upon where you live.
The same holds true for accidents. If someone were to slip and fall while at your house for say, a Labor Day party, and sprains their ankle, you could be sued for medical expenses associated with the fall. Your homeowner’s insurance covers you in this situation. However, you can always pay more for extra coverage if your property warrants it.
Now that you understand what homeowner’s insurance is and what it covers, you might wonder just how much coverage do you need. The answer is simple. Your home insurance policy should have enough coverage to completely rebuild and refurnish your home if it were to disappear tomorrow.
Our first step when providing a quote for homeowner’s insurance is to get a replacement cost estimate for your home based upon its unique design and features. This estimate is the base from which we begin to build your quote.
The thing to keep in mind is that a standard homeowner’s policy doesn’t exist to cover every conceivable expense associated with your home and it also comes with limits. If you have anything of exceptional value, such as expensive art or heirloom jewelry, you should take out an additional policy to insure them for their full replacement value. This coverage costs extra, but it is definitely better to be safe than sorry when it comes to your valuables.
Just like your auto or health insurance, your homeowners insurance comes with a deductible. And just as with those other policies, choosing a higher deductible causes your insurance premium will be lower because you aren’t causing your insurance company to cover more of your costs than necessary.
We consider these factors together as we build a quote for your home insurance which we provide to you free of charge. Get your homeowner’s quote today at http://alexrue.com/california-home-insurance/.