California Homeowners Insurance

Why is a Homeowners Insurance Policy Important to have?

Every homeowner knows how important it is to have a home insurance policy. Losing one's home or property to fires, floods, earthquakes and other natural and man-made disasters can be devastating. Since no homeowner can pinpoint exactly when something tragic or unavoidable will happen to his or her home and property, it is all the more reason to be prepared. A home insurance policy gives a homeowner some protection.Home insurance covers the homeowner in case of total loss of home or property caused by a disaster. In short, home insurance protects a homeowner from damages caused by "acts of God." In addition, home insurance also protects the homeowner from sole liability if someone who doesn't live in the home meets an accident within the property.
Check your home insurance policy and see if it covers your home under the "all risks" clause. In simple terms, the "all risks" clause means that as long as the policy is intact, it will cover your home and property in the policy in any circumstance, with the exception of those circumstances that are in the exclusion clause. To illustrate, under the "all risks" clause, your home is covered for damages caused by fires, earthquakes and vandalisms. If the policy doesn't include flood damage in its "all risks" clause, it means that your home insurance will not cover damages to your home caused by flood.
A good home insurance policy in place will protect you from catastrophes and other unfortunate events that may befall your home and property. Not only does home insurance protect you financially, it also protects you psychologically since having a good home insurance policy gives you peace of mind and security.

Why do I need homeowners, condominium, or renter insurance?
Insurance can help you with your peace of mind, knowing that in the event of a covered loss, your damaged home will be rebuilt and your destroyed belongings will be replaced. Types of coverages include:

Dwellings and other structures For most of us, our home is the single largest investment we will make. Homeowners insurance provides coverage for damage to your home and other structures on your property such as a shed or detached garage. For townhouse owners, your townhouse and separate structures are covered for almost any type of damages except for a few common exclusions, such as wear and tear, earth movement, flood, nuclear hazard and earthquake. Dwelling Improvements, Alterations, and Additions Condominium owners are covered for accidental damage to improvements you make in your unit for which your association's policy does not provide coverage, subject to your condo insurance policy limits. Loss assessment Condominium owners will also receive up to $1,500 for assessments arising from covered damage. This can be used to pay for your share of property damage or injury awards for which your association's policy does not provide coverage. Typically, up to $50,000 is available, but this may vary depending on your policy. Personal Property Homeowners, condominium, or renters insurance also provides coverage for your household contents and personal belongings. You may think your couch, coffee table, sweaters, shoes, coats, TV, VCR and CD player aren't worth a lot, but those items all add up when you have to replace them. Personal Liability Finally, in the event someone is injured on your property or you damage property that belongs to others, you could be held legally liable for the injury or damage. A homeowner, condominium or renter policy provides liability coverage and personal property insurance should this ever occur.
*Only up to the limits of the insurance coverages purchased.

What if I don't have insurance?
Without insurance, you'll be responsible for protecting your property, possessions and liability exposure.For instance, if your house burns down or is destroyed by a tornado, you'll need to rebuild your home and replace all your damaged possessions with only the funds you have or can obtain. Do you usually have $500,000 readily available in case something like this happens? If so, could you be putting that money to better use instead of having it sit there just in case something happens? Something else to consider: if someone is injured on your property, they may sue you for injuries and damages they sustain which may be well beyond $1,000,000. Without insurance, you may have to liquidate your assets and even lose a portion of your wages if you need to pay for a judgment.

For more information about securing Homeowners Insurance today please contact West Coast Insurance Services at (818) 883-4722