WHY INSURANCE IS ESSENTIAL FOR HOMEOWNERS

Becoming a homeowner in California is still one of the best ways to ensure you and your family’s long-term financial stability. Homeownership frees you from the burden of rent. On top of that, your house and lot also serve as financial assets that can appreciate over time.

Given that having your own home is such a key factor in achieving financial independence, you would want to make sure that your asset is well protected from loss or damage.

In this short article, we talk about the importance of homeowners insurance and how it works.

Why Is Homeowners Insurance Necessary?

Even when you’re very diligent about increasing your house value through preventive maintenance and home improvement, there are certain factors that are just beyond your control.

Unforeseen events like burglary, earthquakes, or flooding can significantly damage your home.

Not only will you incur heavy financial burdens for necessary repairs, but you might also shoulder the loss of valuable personal property due to theft or damage.

In such unfortunate circumstances, all the hard work and resources you’ve put into improving your home and accumulating valuable items could be for nothing.

Getting homeowners insurance is one of the best things you can do to protect yourself from such an unfair loss.

What Does Homeowners Insurance Cover?

Homeowners Insurance packages could vary from one insurer to another. To remain competitive, an insurance agent might also offer you extra coverage that you may not really need.

If you’re a first-time buyer, it may be a good idea to stick to the basics first, then evaluate whether you do need extra coverage.

At the very least, your policy should cover the following:

1. Structure of the home – Your insurance should cover physical damages to the house itself.
2. Additional structures – Aside from your main house, your property might include other structures such as gazebos, pools and pool houses, driveways, and fencing. Although not as critical as securing the main house, damages to these structures can still be costly and should warrant insurance coverage.
3. Personal Property – The contents of your home should also be protected by your insurance policy. Expensive electronics, jewelry, art, and antiques are valuable and should be covered by homeowners insurance.
4. Additional Living Expenses – If your house suffered from significant damage, it may not be suitable for you to live in until repairs are made. You may incur additional expenses to secure a temporary place to stay while you wait for your home to be repaired. A good homeowners insurance package should compensate you for these additional costs.
5. Liability – You might get involved in situations where your actions have caused damage or loss of someone else’s property. In such cases, you could be facing a hefty lawsuit. Your homeowners’ insurance should also cover the legal costs you’d incur in this situation.

What Factors Can Affect Your Insurance Premium? 

Payments for Homeowners Insurance can be costly. Affordability is a major factor to consider when you’re shopping around for a policy. You can help yourself prepare and save up for premium payments. To do so, you’d need to anticipate the different factors that influence the cost of your insurance policy. These include:

1. The estimated cost of having your house rebuilt – Bigger and more expensive houses tend to have higher insurance premiums
2. Your home’s geographical context – Your insurance premium rates could increase if you live in an area where crime or unexpected weather is prevalent.
3. Your credit score – Your insurer may offer you a good rate if you have a good financial record and credit history.

Contact us

If you’re considering buying homeowners insurance and need more guidance on where to start, get in touch with our Northridge, California Panorama team now. Call: 818-781-6630