The Homeowner and Homeowner’s Insurance

If you are a homeowner, then most likely you have homeowner’s insurance. You know that homeowners insurance protects your home in the case of home damage or some other sort of liability claim made against your property. However, if asked about the basic information found in your policy would you be able to answer the question. Most individuals do not look at their policy information until it is time to make a claim, and instead focus on the monthly cost of their policy and their deductible amount. Knowing a few basics about your insurance policy will not only give you peace of mind, but will also make you an educated consumer if the need for a claim were to arise. Understanding what is not covered is as important as knowing what is covered. Read the exclusions in your insurance policy, when issued the policy is a contract between you and your insurance company.

Homeowner’s Insurance Basics

If you own a home and carry a mortgage, then it is a requirement by law that you have a homeowner’s insurance policy to protect the value of the home. Even if you have paid off your mortgage, homeowner’s insurance makes sense as it limits your risk in the case of a liability against your property or damage to your home. According to the Insurance Information Institute, homeowner’s insurance in its most basic policy homeowner's insurance orange county californiaform covers the structure of your home, personal belongings, liability protection, and living expense coverage if you were unable to live in your home due to an insured disaster.

Evaluating Your Policy

Although homeowner’s insurance basics may seem simple, understanding what coverage you have and where gaps in coverage may need to be addressed is important to the financial well-being of you and your family. Meeting with an insurance agent to discuss your policy and its protections can lend great clarity as to what you can expect in the event you need to make a claim. An insurance agent can assist in the evaluation of your policy, determine whether any additional protections are needed, and help you make informed decisions that provide you the greatest protections at the price you can afford.

Additional Homeowner’s Coverage Options:

Need more protection than the basic homeowners insurance policy provides?
You can add additional riders for:

  • High Value Item Coverage

    – a good idea if you own jewelry, artwork, antiques, collectibles or firearms with a total value that exceeds your policy’s maximum pay out for such items.

  • Earthquake or Flood Coverage

    – a must-have if you live in an area prone to such conditions. A standard renter’s insurance policy does not include coverage for a flood or earthquake.

  • Sewer and Drain Back Up Coverage

    – back-ups happen more often than you would think, and they cause a lot of damage when they do.

  • Replacement Value Coverage

    – If you make a claim, you’ll be reimbursed for the full replacement cost of your items – rather than the depreciated cash value of your items.

  • Home Business Coverage

    – Most insurance policies offer very little coverage for business equipment. If you work from home, consider adding a home business rider to boost your equipment and liability coverage.

  • Business Merchandise Coverage

    – If you store your business’ inventory at home, an additional rider will be needed to insure it properly.

Call us at 714-258-2800 or 888-725-7776 to get your homeowner’s insurance questions answered and to receive a no obligation quote today.