Understanding Everything You Need to Know About California Homeowners Insurance

Posted by prontoinsurance on February 23rd, 2021

There's so much to love about California. It's beautiful! The weather is great! We have sports, shows, and art! Living in California is highly desired for many reasons, which is why our population is steadily increasing. It would not be accurate to say it’s perfect, though. While we don’t have blizzards or hurricanes, we do have some pretty crazy weather, like severe thunderstorms and even wildfires. Beyond large storm events, we also have to deal with mold and insects that like the warm weather just as much as we do. In short, your home better be protected!

Did you know that cheap homeowners insurance in California may not protect your house and the belongings inside from everything that could occur? Rain may be covered, but flooding often is not. Isn’t that the same thing? Not to an insurance company! With so many types of insurance out there and so many different companies wanting your business, it can be confusing to understand your best choices. You don’t want to get caught unprotected, so here is what is important to know:

#1 Make sure your quote includes everything you need. Getting a quote well below the average home insurance cost in California doesn't help you if it doesn't include what you actually need. Key components of a standard policy include:

Dwelling (your house)

Other structures (like a tool shed or detached garage)

Personal property inside the home

Loss of use/additional living expenses if your house is uninhabitable after a covered loss

Personal liability (if someone claims you caused them injury or property damage)

Medical payments (to others)

Be very leery of any "too good to be true" options that don’t cover all of these items or cover them well enough to actually protect you financially should you need to make a claim.

#2 Homeowners insurance isn’t just for weather. You certainly want great coverage next wildfire season, but it would be a mistake to think it doesn’t matter until then. Homeowners insurance helps pay to repair or rebuild your home and replace personal property due to a covered loss. A major storm or fire is far from the only time homeowners insurance can help you out. A typical homeowners insurance policy includes losses from theft and structural damage from fire, leaks, water discharge, or a fallen tree. The majority of claims are for water leaks from air conditioning systems, roof damage, water heaters, and busted pipes.

#3 Pay attention to your premium and deductible. Often, what makes a cheap homeowners insurance in California so cheap is that they offer you a low premium and a way-to-high deductible. Let's further explain this. When you have an insurance policy, you pay a little bit each month which is called your premium. There is also a “deductible” or excess, which is the amount of money that you must contribute to the repair or replacement cost of property. The higher the deductible, the lower the annual premium. You either pay a very small amount each month and must pay out a few thousand after a loss before your policy covers the rest, or you pay a higher amount each month and don’t worry about paying much at all when a major event forces you to file a claim.

Hopefully this information helps you be a bit more knowledgeable about your insurance options and needs.