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Home insurance protects against numerous risks, including natural disasters, theft, identity fraud, and property damage. Your required California home coverage depends on location, structure, and price. Read on to discover traditional home insurance needs and alternative options ideal for your property.
Legalities
While no set law in California requires individuals to get homeowners insurance, the bank that approves your loan, as well as other financial investors, could mandate the coverage. A lender may not process the loan or allow an official move-in date without proof you’ve purchased insurance coverage.
If you get the required type of insurance, don’t be under the misconception that you can let it go in the future months or years. Until you own the property outright, your contract will require you to maintain an agreed-upon policy. Failing to do so at any time could lead to lawsuits and other issues.
Mandated Coverage
Although lenders almost always mandate home insurance, the coverage requirements will vary. Most traditional policies include dwelling coverage, loss of use coverage, structural coverage, medical payments to others, personal property coverage, and personal liability coverage.
A traditional policy should also cover fires, including smoke damage, wind, lightning, and hail perils. If an explosion occurs or you experience damage caused by a vehicle or airplane crash, your policy should cover these issues. Vandalism, equipment or appliance breakdowns, and disasters are also covered by traditional insurance policies.
Additional Options
While bank lenders and other personal property investors often mandate traditional coverage, there are more insurance options to select from, reducing the risk of financial problems. These additional policies include flooding, sump pump failure, and umbrella insurance.
These extra options can ensure issues not covered under your traditional policy can be. For example, if your current insurance doesn’t provide help in the event of a flood, securing a separate flood insurance policy could protect your house and other personal property against flood damage.
You should also contact an insurance provider to learn more about earthquake coverage. These professionals can help you determine if your California property qualifies for this option, which is necessary because the state is likely to experience between two and three large earthquakes yearly that could cause moderate damage.
No Mortgage
If you’ve paid off your California homeowners loan, you don’t need residential insurance by law. However, there are potential risks you should protect yourself against, making it more of an advantage than a disadvantage to maintain coverage.
Safeguarding your financial investment could protect it against various issues Californians are more susceptible to because their homes are placed in mountain areas, along miles of picturesque coastline, near deserts, and more.
You can contact an insurance provider to learn more about requirements as well as the options you have once your mortgage is paid in full. The aim is to ensure you keep everyone safe and secure and to reduce the odds of financial setbacks in the event of an accident, injury, theft, environmental damage, and more.
For reliable, affordable homeowners insurance, San Diego residents know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and auto insurance Chula Vista. Request a free quote by calling one of our friendly agents today.