When it comes to insurance, most homeowners are concerned with coverage for the actual brick and mortar of our homes; but unfortunately, not many are aware that their home insurance liability might offer them the most amount of financial protection of their entire homeowners policies. Why? Because when a liability claim goes to court, the defendant usually winds up paying exorbitant sums in compensation, medical and legal costs. And it’s not uncommon for a defendant to go into deep debt and in the worst-case scenario, even lose his home.
What Home Insurance Liability Covers
Imagine this: a guest in your home slips on the stairs and breaks her leg. She sues you and you wind up not only having to pay her medical bills, but also her legal costs, as well as a steep hike in your own insurance rates. If you don’t have adequate home insurance coverage, this could be a very challenging financial scenario. But with comprehensive insurance coverage that includes home insurance liability, the other person’s medical and legal costs are covered, as are the costs of your own representation. This means that your finances are protected and you won’t have to worry about selling your home to pay damages.
Find comprehensive insurance coverage that you can afford by requesting quotes from a trustworthy insurance comparison site such as AgentInsure. All you have to do is fill out the information form and you’ll immediately receive up to five free, no-obligation insurance quotes, along with the contact details of an insurance agent in your area who can answer any questions you may have.
Your home is most likely your biggest and most valuable asset, and you should have California homeowners insurance to cover any physical damage to your home and any liability you may incur as the owner of that home.
If you have a mortgage on your house in the state of California, or for that matter, in any state, your lender will require you to purchase and maintain homeowners insurance on that home. Even if you have completely paid off the mortgage and own the house outright it is still very prudent to have a California homeowners insurance policy.
In order to qualify for a mortgage every lender will require you to have an insurance policy that will provide adequate protection against any damage or destruction to the property that they are financing. A California homeowners policy should cover all hazards as well as any liability that may occur on the property.
Mortgage companies differ in their requirements over the specific amounts of coverage you must carry, but, for the most part, they want you to carry replacement value and not actual cash value coverage. Replacement value protects the lender in the event that your home needs to be repaired or rebuilt due to a covered hazard. It pays the full cost and not the depreciated cost of the materials needed for repairs or reconstruction. Actual cash value only pays up to the limit of the policy which can be below the current market price for the materials and labor needed to actually restore the home to the same condition as it was in before the damage occurred.
Most homeowners policies in California also cover liability which protects you as the homeowner in the event someone gets injured on your property and sues. While this type of insurance is not mandatory, every homeowner that cares about protecting their house should carry personal liability coverage.
If you own a home, it’s important to compare home insurance quotes to make sure you get sufficient coverage for both the home itself and its contents. Without adequate coverage, you could be looking at thousands of dollars of repair or replacement costs in the event of a burglary, fire or flood. What follows are three tips to bear in mind when comparing homeowners insurance quotes for the possessions inside your home.
- Before you compare home insurance quotes, make a proper assessment of the value of your possessions. Usually, homeowners policies insure the contents of your home at a percentage of your home’s value – but this doesn’t always reflect an accurate value. To avoid being underinsured or paying premiums that are too high, make a list of your possessions and write down realistic replacement costs.
- If you own special collections, art or antiques, have them appraised by a certified appraiser. Make sure to keep all paperwork pertaining to your collections, as well as the appraisal certificate, and read the fine print about collections when you compare home insurance quotes. In some cases, you may have to purchase separate insurance for valuables in order to cover them for the replacement value.
- Always read homeowners insurance quotes carefully to find out what’s covered, so you’re not in for a nasty surprise in the event that you have to file a claim. Most homeowners policies cover damages due to burglary, fire, and windstorm, but not damages caused by lack of maintenance to the home, floods or named storms.