Homeowners Insurance Is More Important Than You Realize

For most consumers’ homeowners insurance is just one more bill they have to face to share in the American dream of home ownership. Because of this, the last thing they’re thinking about is…

“Did I just do one of the 5 worst insurance mistakes we all make.”

Buying a new home can be both physically and financially exhausting. Because of this, by the time you’ve covered the down payment, the moving expenses and set up all the services, you probably just want the cheapest home insurance coverage you can find. We forget that our home is probably one of the most, if not the most, valuable assets we’ll ever own. Because of this, saving money by skimping on homeowners insurance can lead to financial disaster. Fortunately, whether homeowners insurance coverage is good or bad, isn’t really a price thing, it’s an agent and consumer thing.

Simple Questions to Ask Yourself about Your Homeowners Insurnace Plans

• Do you understand insurance?
• Did your agent take the time to explain the coverages and why they are recommending different options and or endorsements?
• Does your home insurance truly cover the needed replacement costs? Is your coverage adequate in the event of a total loss?
• Would you lose your home if you were sued? Would your coverage be adequate to defend against attacking lawyers?
• What replacement cost should be used for your home? Should it be the same as your neighbors?

These are just a few of the questions you need answers for if you’re in the market for a new home or if you’re simply reviewing your insurance plan!

Unique Homeowners Insurance Concerns for Californians

California has some very unique concerns that are more specific than many other states. So, if you own a home in California, you should be aware of these additional factors and your insurance agent should take the time to point these out and explain how to address them in your homeowners insurance policy.

• Your zip code can have a lot to do with home rebuild costs. Your coverage needs can increase or decrease by up to 50%, even in the same county.
• Nearby high brush or fire concerns are considered when pricing a homeowners insurance policy, so it may make insuring or selling your home very challenging if not downright frustrating.
• Should you have a low or high deductible and really; what does that even mean?
• I know California has earthquakes, so should I have coverage for that? Is that different from the home warranty I had to buy when I purchased my home?

The greatest take away from this article should be that insuring your home in California has some unique caveats, so you need to educate yourself or find a knowledgeable agent who can bring it all down to your level of understanding. Otherwise, you might find yourself in a compromised position with your most valuable asset.

If you have any questions about home insurance, please don’t hesitate to contact Chris at (619) 980-7263. He will be happy to help you understand the coverage requirements and options you have in insuring your home.