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Becoming a homeowner in California is a strong sign of economic and social security and mobility. Not only is your home valuable in a financial sense, but it’s also an invaluable personal asset. It allows you to provide shelter for yourself and your family. It serves as your little corner of the world where you can build your life.

Homes are intimately intertwined with the lives of those that live in them. Any loss or significant damage to a home can be disruptive and even life altering. That’s why it’s important to have homeowners insurance to protect your home from damages. This article will talk about the basics of homeowners insurance and what it covers.

How Homeowners Insurance Works

A homeowners insurance policy compensates you for damages to your home caused by natural disasters and accidents. It allows you to cover costs for repairing or rebuilding your home.

Homeowners insurance can also cover liability for persons injured on your property. It can also cover you in case you are liable for causing damage to someone else’s property. This includes costs for getting legal counsel to represent you in court.

What Damage Does Homeowners Insurance Cover?

To be competitive, different insurance companies will have a range of packages that offer additional coverages. In general, however, home insurance policies should provide coverage for the following basic items:

  1. Structure of the home – this refers to the house itself
  2. Additional structures on the property – this includes other structures like fencing, driveways, gazebos, pools and pool houses, and barns.
  3. Additional Living Expenses – This is compensation for costs incurred while you are unable to live in your home as it undergoes repairs.
  4. Personal Property Coverage – This is otherwise referred to as contents insurance. It refers to the items you have in your homes like expensive jewelry, electronics, and other personal belongings.
  5. Liability – this protects you from lawsuits for injuries or property damages you might cause for someone else.

Furthermore, homeowners insurance can protect your property from damages caused by water, snow, lightning, hail, fire, theft, earthquakes, and vandalism. But it’s important to note that not all insurance policies would automatically protect against these hazards. These coverages may need to be purchased separately. It’s best to check what kind of damages are included in the package your insurance company offers.

Factors That Affect The Cost Of Homeowners Insurance

Affordability is a huge consideration when buying insurance. As a customer, you need to be aware of the factors that can influence your insurance premium. These factors include the very structure of your home, its location, as well as your own financial position.

What it costs to reconstruct your home is a big factor in determining the cost of your insurance policy. The geographical context of your home is also a major consideration. The high prevalence of crime or frequency of natural disasters and extreme weather events can cause your insurance rates to go up.

Insurance companies may consider your credit score and past insurance history when determining your premium. If you have good financial standing and a reliable payment record, you may be granted a favorable rate.

Panorama is proud to offer insurance coverage that is responsive to your needs and budget. Visit our website to learn more about our services.

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