When you are in the market for California homeowners insurance you should consider the premium you will have to pay, the level of service the insurance company can and will provide and how well claims are handled.
The Premium You Pay
The premium is the amount you pay for California home insurance. Usually, your mortgage company will pay the insurance company once per year from an escrow account that you fund monthly along with your principal, interest and tax payments. Premiums differ depending upon the amount of coverage you choose, the value of your house, the neighborhood you happen to live in and many other factors. Generally, new homes and homes in near-perfect condition and complying with all the latest building codes receive lower overall premiums than similarly sized homes that are old and not in such good condition. Premiums for California homeowners insurance are based on risk assessment just like any other type of insurance. The less risk your home presents, the lower the premium you will be charged to insure it.
The Level of Service You Receive
When you purchase California homeowners insurance it is best to go with an insurance company that is easily accessible if you have any questions or problems with your policy. Some insurance companies are very customer friendly while others are much more conservative in their approach to business. Some companies may nickel and dime you with fees to provide a report or have limited hours available for contacting them. On the other hand, some insurance companies give you 24 hour web access, toll free customer service and little or no waiting time to respond to your inquiries. The more customer friendly, the better your experience will be.
Handling of Claims
Simply stated, you want an insurance company that will handle all of your claims fairly and with minimal delay. There are many homeowners all across the country that find out too late that the insurance they thought they had will not pay off when they need it the most. If you doubt that statement, just ask some of the New Orleans homeowners who lost their homes during Hurricane Katrina.