Some people believe that they no longer need home insurance in the state of California once their home is paid off. After all, if the mortgage balance has been satisfied in full, there is no way that they will have to fork over a large sum of money again, right? That is actually an erroneous assumption, and here are some reasons why even those with paid-off homes still need California home insurance:
- Disaster Protection — A home might be paid off, but it is still susceptible to damage from earthquakes or other natural disasters. The cost to repair or replace a home that has been hit by such events is tremendous, far beyond what most people have accessible in their savings accounts. A California home insurance policy will pay the homeowner what it will cost to fix the home up to the policy limit.
- Personal Liability — It is all too easy to get sued in today’s world, and homeowners are in a lot of trouble when they lose a personal liability case because the court-ordered payout to the plaintiff could cost well into the hundreds of thousands. A good homeowners insurance policy will pay for these damages, whether it is Los Angeles homeowners insurance for Los Angeles’ residents, San Francisco homeowners insurance for residents of San Francisco, or home insurance for those who live in other California cities.
- Theft Protection — Finally, homeowners who have paid off their mortgage may still suffer the loss of their possessions through burglary or other forms of theft. Quality California home insurance policies include contents insurance that pays the replacement costs for stolen merchandise according to the policy limits.
People who live in the state of California and want to drive are required to carry a certain minimum amount of California auto insurance. Like most of the country, California operates under a tort system, under which drivers are held responsible for bodily injury or property damage that they cause while operating a motor vehicle.
California requires anyone that operates a motor vehicle to be financially responsible for any bodily injury or property damage that may result from an accident that was determined to be their fault. Most people opt to purchase California car insurance, which will protect them in the event of an accident.
Minimum California Auto Insurance Requirements (15/30/5)
With this minimum amount of liability coverage, your insurance company will pay up to $15,000 for injuries sustained by an individual that suffers bodily injury as a result of your actions while driving a vehicle and up to $30,000 for all persons injured in a single accident that you were found to have caused. It will also pay out up to $5,000 for any property damage that was a result of the accident.
Other Ways to Insure
California has several other ways to prove financial responsibility and be allowed to legally drive a car. In lieu of a California car insurance policy, one may make a $35,000 cash deposit with the DMV and self-insure against a possible at-fault accident. Fleet owners of 25 or more vehicles may choose to set up a fund on their own instead of buying traditional California auto insurance. Upon sufficient proof that the fleet owner has set aside sufficient funds, the DMV will issue a certificate of self-insurance. Finally, an individual can obtain a $35,000 surety bond from a licensed California insurance company.
Did you know that you might be paying a higher California homeowners insurance premium than your neighbor simply because of the type of materials used to construct your roof? Yes, it is true. California homeowner insurance companies may charge you higher overall premiums based on the materials that make up the composition of your roof.
The logic behind adjusting insurance premiums because of the type of roof you may have is based on two things. First, an insurance company may adjust their rates because your roof is made of materials that are more or less susceptible to damage or destruction from fire or other types of hazards. Second, they may adjust the premium you pay based on the expected life of your roof and the cost to repair or replace that roof.
Steel, tile and slate roofs are usually the strongest and safest types of roofing material. Not only do they hold up very well in all types of weather, but they are also very fire-resistant or fire proof. These types of roofs are more expensive to install that a typical tar and shingle roof, but, they also can last for 30 years or longer before needing repairs or replacement.
Now it may be impractical to tear up your old roof and replace it with one that will get you a lower California home insurance policy, but, if your roof is old and needs to be replace, you might consider an insurance-friendly replacement.
Check with your California homeowner insurance company to see if the offer discounts on certain types of roofs. While it may cost you more to initially buy the materials and have your roof installed, you will be adding value to your home. Also, if you plan to stay in that home, you will have a nicer roof to enjoy and at the same time add to the value of your home.