Cheap California Homeowners Insurance
Finding cheap or affordable homeowners insurance in California can be a little tricky with the number of natural disasters that plague the state in the form of earthquakes, fires, mudslides, and floods. However, it is possible to find a cheap CA home insurance policy.
The natural disasters that happen in California have brought about some special regulations in insurance, especially homeowners insurance in CA. One of these regulations forces California homeowners insurance companies to justify what they charge for premiums to the California Insurance Commissioner.
Comparing insurance companies and insurance policies in California is going to make all the difference in the world in finding cheap or affordable rates that will cover your home and personal property without taking a huge toll on your pocket book. To find cheap CA homeowners insurance quotes the easy way just plug your zip code into the tool at the top of the page and get quotes from multiple insurance companies.
Understand Coverage Options First,
Then Shop For The Cheapest
California Home Insurance Policy
There are three major types of coverage you can buy as well as Building Code Upgrade Coverage that will pay for any building code upgrades that need to be made when rebuilding your home. Some companies cover this automatically, others require additional coverage.
Cash Value – This policy will replace your home and possessions after deducting for depreciation.
Replacement Cost – This policy covers repairing or rebuilding your home as well as replacing your possessions without accounting for depreciation.
Guaranteed or Extended Replacement Cost - This is the highest level of insurance you can purchase. Guaranteed replacement cost policy pays whatever it costs to rebuild your home prior to the disaster, taking into account inflation and the cost of building materials, even if it exceeds policy limits. Some insurance companies only offer extended replacement costs up to 20% of the cost of your home.
What California Homeowners
Insurance Covers
Dwelling - This includes your house, detached garage and storage sheds from fire, lightning, tornadoes, wind storms, hail, explosions, smoke, vandalism (including vandalism caused by riots), theft, aircraft and vehicles.
Personal Property – This is your furniture, clothing, computer, TV, and other personal belongings. The typical limit is 50% of the cost of your home. However, in some circumstances, you can buy additional coverage for things such as fur, jewelry, art and special collections.
Additional Living Expenses and Loss of Use – If you have to stay in a hotel or rent a temporary apartment while your home is being rebuilt or repaired, your California homeowners insurance will pay for your living expenses, including food, increased housing costs, furniture rental, telephone instillation and relocation costs to maintain your normal standard of living.
Liability – This protects you up to $100,000 when you or another member of your family, including your pet, unintentionally injures someone or damages their property.
Medical Coverage – Covers medical costs to non-family members injured on your property.
What California Homeowners
Insurance Does Not Cover
- Water seepage not related to flood.
- Earthquake – this must be purchased separately at minimum cost.
How To Find Cheap California
Homeowners Insurance Rates
Section 112959 of the California Insurance Code requires the California Insurance Commissioner to publish and distribute a comparison of insurance rates each year. Rates vary greatly from county to county as well as from company to company and can range between $349 and $4880. However, you will be happy to know the average homeowner’s insurance premium is around $835.
There are several things you can do to help lower your CA home insurance rates.
Increase Your Deductible. If you have a $250 deductible, raising it to $500 can save you some money, raising it to $1000 can save you even more. Don’t raise it to high though. You want to make sure you can cover it.
Look Into Package Deals. Some insurance companies will give you a discount if you purchase other insurance, such as your auto insurance, through them.
Installing Fire Alarms and smoke detectors can lower your premiums as well as having an indoor sprinkler system. By the same token, if your household consists of entirely non-smokers ask your agent about discounts.
Installing Security Systems and dead bolts to prevent break-ins can help lower your costs.
California Homeowners Insurance:
Earthquake Coverage
Earthquake coverage is handled much differently than your regular homeowner’s policy and will add up to an additional $13 to your insurance premium, but covers things much differently than the major policy. Companies that sell residential types of insurance are required by the California Insurance Code to section 10081 to offer earthquake coverage and the offer must be made in writing, describe the coverage amounts and deductibles along with the policy premium.
After being offered earthquake insurance by your insurance company, by law you have 30 days to respond or the offer is considered rejected. Insurance companies only have to offer earthquake insurance every other year and they are prohibited by law to cancel, reject or refuse to renew your policy if you accept it.
What you need to know about earthquake coverage:
Earthquake insurance covers the cost of replacing your home, your personal property for no less than $5,000 or 10% of the cost of the dwelling and for any additional living expenses of at least $1,500.
The maximum deductible that can be charged on earthquake insurance is 15% of the cost of your home.
Additional structures such as swimming pools and masonry fences are excluded in earthquake coverage.
Retrofitting your home to withstand earthquakes by such measures as anchoring the house to its foundation with seismic bolting, reinforcing the fireplace and installing automatic gas shut-off valves can help lower your premium.
If your home has been retrofitted your insurance company must offer $10,000 for reconstruction costs to bring your home to current building standard codes.
Earthquakes and/or aftershocks can cause other damage such as the bursting of water pipes, this falls under proximate cause and is not covered under the normal perils of your homeowners insurance.
You must have earthquake coverage for these things to be covered. Fires caused by earthquakes are the only exception to the proximate cause clause in California homeowners insurance policies. This is covered under your regular policy.
Compare Cheap California Homeowners
Insurance Policies Now!
Use our free tool at the top of the page to get started comparing California homeowners insurance policies from top insurance companies side by side. Get started finding cheap California homeowners insurance now!