When you are a first-time homeowner, you have tons of information coming your way in a short period of time. It can feel overwhelming at times! One of the items that needs to be considered is home insurance. Home insurance in California is important for a variety of reasons. You may be wondering why you need home insurance, what home insurance covers, and how home insurance in California works. Let's take a look at the answers to some of your questions and get you on the road to being more informed about this part of the homebuying process!
Home insurance in California can cover a variety of troubles and expenses based on the level of coverage you elect to purchase. Standard home insurance will typically cover common losses such as fire, water, theft, and wind damage. Additional coverage may be added to cover more extreme damage caused by earthquakes or flooding. You will have the option to add on these additional items and will have to decide how big of a threat they may be based on home location and perceived risk. It’s also good to consider your ability to pay out of pocket should certain events occur. Make sure when you are selecting your insurance you know what you are purchasing and how it will help you if it ever needs to be utilized.
You may be wondering if you really need home insurance in California. The cut and dry answer is no, you are not legally required to have insurance on your home in the state of California. However, if you have a mortgage for the house, your mortgage company will very likely require you to gain coverage as part of your home loan stipulations. Even if you do not have a mortgage, it is always a smart idea to have insurance on your investments! If major damage were to occur to the property, you won’t have to worry about paying the whole expense out of pocket, which may very well be financially draining to most people.
Now that you are aware of the fact that you likely need to obtain home insurance in California, you may be wondering, how does home insurance work? Most buyers choose to work with an insurance agent to guide them through the home insurance buying process. A home insurance broker can give a personalized experience and guide you through the process of obtaining insurance in the most smooth and informed way possible. If you have a mortgage, your monthly insurance premium will likely be tacked onto your mortgage bill, so you won’t have to worry about remembering to make the payments. If you ever run into a situation and have to use your home insurance to file a claim, you can work with your agent. This is why it is important to find someone you like and feel like you can trust.
New homeowners have loads of paperwork and hurdles to go through during the buying process. Being in the know about the coverages, workings and requirements of home insurance will put you ahead of the game.
