Almost every lender will require that you have basic hazard insurance before they approve a loan, but most homeowners will want comprehensive coverage before getting the keys to their new home. These policies can be invaluable when any number of common mishaps or accidents take place and you are in need of financial compensation. If you have recently begun to search for affordable California home insurance quotes, then here is a look at exactly what kind of policy you will need in the beginning and what your options are for expanding your coverage.
The Basics of Coverage
Almost every homeowner is going to choose a policy that is classified as HO2 coverage. This form of coverage is considered adequate for the average home and covers against 16 perils. HO1 coverage is the bare minimum that homeowners will need in order to receive a loan from most lenders while an HO3 policy provides broad coverage for all perils that are not specifically excluded. The most common perils include fire, smoke, hail, riots, windstorms, vandalism, theft, and freezing. If there is any damage from these perils, the policy will help homeowners repair or replace their home as well as any property inside the home. This includes the cost of relocating for a short period if the home is deemed unsafe.
What Isn’t Covered?
A homeowner can opt for a premium policy that will essentially cover any form of damage, but this is not financially practical in most situations. This means that there will be gaps in the coverage for perils that are less likely. The average policy may not include coverage for water damage from either floods or slow leaks, but this can be remedied with a rider. The 16 perils that are covered by basic policies make up around 90 percent of all claims that are made. Attempting to add comprehensive coverage to your policy could make your California insurance quotes much more expensive. Instead of covering every single peril, it may be more prudent to go with a basic policy and then add riders for specific issues.
Special Riders and Additions
Practically any type of rider can be added to homeowners insurance. Homeowners should take a look at their own personal belongings, what will be stored on their property, and what some of the local threats may be when choosing a rider. In order to keep California homeowners insurance rates to a minimum, you may also want to increase your deductible to $500 or even $1000 depending on your own financial stability. Some of the most common riders include extended coverage for expensive jewelery, antiques, and electronics. If anyone is working out of your home, you may also want to include office supplies in your policy in the event of damage or theft.