California home insurance is very complex since they face
specific challenges living in the Golden State. They must be always prepare for
the hazard of an earthquake. California smack on the middle of San Andreas
Fault, and it has exposed the State to severe natural disasters that can lead
to the massive destruction of infrastructure and homes. Therefore home
insurance in California can be assumed to be very important for a home owner.
In summertime and fall, another hazard is the wildfires that is a big threat to
homes and personal property.
Even if the there is a world recession and the sub-prime
mortgage crisis in the US, California home insurance have been surprisingly
remained stable. The reason for this being that insurance companies have not
been required to adjust to falling margins, this being the result of lower
borrowing costs with the fall of the interest rates to below 1% in the USA. The
average cost for an insurance policy is calculated at approximately 2-5% of the
property's value.
Home Insurance is not compulsory by law in contrast the
insurance requirement when you are purchasing a car. However, even if it is not
compulsory, in greater number of purchases, it will be required if the buyer
purchased his home through a mortgage.
After trying different home insurance comparison sites
for California, the most expensive for which information were provided were San
Francisco, San Mateo, and Santa Cruz confirming the assumption that insurance
is more expensive where is a higher likelihood of earthquakes occurring.
Under the California State Law since most insurance
policies in the US are
Now how effective really is the insurance? According to
California State Law (most insurance policies in the USA are prescribed at a
State level, the most standard homeowners policies must cover Dwelling
coverage, Other structures coverage, Personal property coverage, Loss of use
coverage, and Liability insurance. Home insurance comparison websites offers
0.2-0.78% discounts depending on what kind of technology was installed in the
house to reduce risk of damage like for example burglar alarms.
It's important to note that most home insurance policies
will cover damage caused by fire, windstorms, hail, lightning, theft or
vandalism. There are other homeowners policies that cover additional perils as
well. Typically, floods and earthquakes are excluded. It's imperative to
discuss with your agent what your policy may and may not cover. And for those
perils that are not covered, there may be supplemental insurance you can
purchase.
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