Home Insurance Sacramento, CA

Understanding Home Insurance in Sacramento

When you sit down and really think about what could go wrong when you are a homeowner the list may go on and on. This is something that should really be considered when it is time for you to start gathering up home insurance quotes and purchase a home insurance policy. Homeowners have to be covered on every angle from natural disasters, injury, theft, and legal problems. It is quite common to hear people say they are not sure what type of coverage they need or how much they need. The truth is that there are differences in policies.
Policies Explained
There are policies that cover catastrophes including vandalism, wind damage, theft, fire, a tree that falls on your garage, etc. This is the policy that most people end up with. There should also be a policy that offers a little more coverage and then an advanced policy that covers you for almost everything. Of course, the insurance rates will be considerably higher for each upgraded policy. These policies are called HO-1, HO2, and HO3.
Extra Protection
If you have expensive jewelry, collectables, artwork, furs, or antiques, you may want to consider extra coverage for these pieces in case they need to be replaced. In the event of a slip and fall on your property, your standard home insurance policy will cover this but the question is, will the coverage be sufficient? You may want to consider a little extra protection. And, imagine that your house simply blew up and nothing was salvageable, how much would it cost to replace every single thing?
Inflation Guarantee
This is when it starts to get a little confusing, do you want what your home’s insured value is or would you need more? Perhaps consider an inflation guarantee to add to your policy. It is also wise to separately insure expensive items just to be covered. It is really not feasible to cover every single expense so don’t even try to. And just because you have the insurance does not mean that everything requires a claim. Too many claims will boost your insurance rates in a big way and sometimes the insurer will even cancel your policy.
Assessing the Value
If at all possible, hire a builder to do a walk through and tell you how much it would cost to build your home from scratch. This at least gives you a ballpark idea of how much coverage you should buy. Mortgage lenders require home insurance so they do not suffer from a huge loss but that is the kind of thinking that you need to have too. It is true, insurance rates can be astronomical but there are ways to trim them down.
Trim the Costs
Raise your deductibles, keep a good credit standing, take advantage of multi-discount policies where you allow one insurer to underwrite all of your insurance needs, and use all possible discounts. Check around for different home insurance rates and see what is offered. The Internet makes this a fairly simple task.