Our Guide to Home Insurance in California
While California is one of the most desirable places to live in the United States with beaches, mountains and deserts all within a few hours of each other. However, geographically, California is prone to havoc-wreaking natural disasters like floods and earthquakes. That along with the high cost of living can be a nightmare for a homeowner who faces any sort of disaster.
A disaster, whether it be a fire, flood, or earthquake, can severely damage your home, and the cost to rebuild may be extreme! For this reason, most have home insurance that will cover the bulk of costs when disasters like this happen.
However, this is not always the case. Insurance companies often don’t have your best interests in mind and will give you too low of an insurance settlement to properly restore your home. We’ll get into how to avoid this later.
Is Home Insurance Required in California?
Short answer – no, home insurance is not required in California. Do we recommend it – 100%. Even though it is not mandated, many mortgage providers will require a homebuyer to have home insurance. They do this so that in case your house is damaged, you can have it repaired and still pay your mortgage payment at the same time. On the other hand, if your home faces large damages and you aren’t under insurance coverage, you may not be able to pay your mortgage lender, leaving them at a loss.
What Does Home Insurance Cover
Not all coverage is created equal. Look at your policy in depth to see the extent of your coverage. Many insurance policies will cover the following:
- Interior and exterior damage to the home
- Loss of or damage to personal property
- Injury that occurs while on the property
- Weather damages
Keep in mind that while most insurance policies will cover disasters, they do not cover earthquakes. We suggest California homeowners also purchase earthquake insurance.
How Much Does Home Insurance Cost in California
Thankfully, even with a high cost of living, California does not sit at the top of the chart for home insurance costs. The average homeowner pays an annual premium of about $1,250, which is about $104 per month. This lower cost may be attributed to limited coverage, like no earthquake coverage, which can cost around $739 annually, so in actuality, it all pans out pretty evenly. External factors that may affect your premium include your credit score and the recency of your last claim.
What to Do When My Home Faces Damages
Once again, living in such a beautiful state does come with its downfalls. Disasters in California are often devastating for homeowners. The first step to take after your home faces damages is to call your insurance company to file a claim. After this, be sure to contact your mortgage services in case you can’t make your payments. Often, insurance providers will lowball your damages, leaving you to cover much of the cost out of pocket.
Hiring a Claims Consultant
Property Claims Consultants works with your insurance provider to bring you a higher settlement. Without a claims consultant, you could end up paying thousands of dollars on your own. Save your time and money by hiring a dedicated team to get you the settlement you deserve. Contact us today to see how you can get a high settlement.