No matter what kind of contract you sign, it is important to make sure to read all the fine print ahead of slapping your signature on it. This is also true when it comes to signing your name to a new homeowner’s insurance policy in California.
Today, we will go over some obstacles and challenges that may be hiding in your homeowner’s insurance policy and discuss what you should know before signing on the dotted line.
You may think that you have all your bases covered by choosing a standard homeowner’s insurance policy. However, this is not always the case. Insurance companies want to reduce the amount they have to pay out any way they can, so some basic policies may have exclusions for events like earthquakes and floods.
With these kinds of exclusions, homeowners need to purchase add-on policies, so there are no gaps in their coverage. To determine your flood risk, visit FloodSmart.gov. This will help you decide if flood coverage is something you should seriously consider for your home in California.
There are two different deductible types for most homeowner’s insurance policies: all-perils deductibles and wind deductibles. An all-peril deductible covers fires and burglaries, while the latter is a deductible for properties in areas that are more at risk for high winds and hurricanes.
The insurance deductibles are often a specific dollar amount or a percentage of your total available amount of insurance on the policy. It is important to understand your deductibles before signing onto a new policy.
An anti-concurrent causation cause (ACC) is something often overlooked by homeowners. It means that if a structure on your property was destroyed by two different causes (wind and flood, for example), then the insurance may only cover one. This means your claim can either be blocked or limited by the insurance company.
You want to find a homeowner’s insurance policy that does not include the ACC clause or see if there is an add-on policy you can get in addition.
If your home was damaged and needs to be repaired or replaced, there may be changes in building codes you need to be aware of. Sometimes new building codes can even require that your home is on a higher elevation if you are in a flood area, for example.
A standard policy isn’t likely to cover this kind of expense. So, you may end up having to purchase a supplemental insurance policy to cover your risk in addition to your standard homeowner’s insurance policy.
Finding the right homeowner’s insurance policy can be complicated, especially when it comes to reading and understanding the fine print.
To help you find the best and most affordable policy and one that has all the coverage you need, contact the professionals at Panorama near Northridge, CA today to get started. They can help lead you in the right direction when renewing or establishing a new homeowner’s insurance policy.