How Much Home Insurance Do I Need In California?

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Are you looking for home insurance? Whether you’re a homeowner, renter, or landlord, you need some form of home insurance. Your home is one of the biggest investments you will ever make. It’s where you live, eat, sleep, and keep the majority of your belongings. Home insurance provides financial protection for your home and the things inside it. 

There are many different types of California home insurance coverage. If you’re comparing insurance prices in the state of California, it helps to know how much coverage you need. 

Types of Home Insurance Coverage

You can purchase home insurance coverage by category or in a bundle. Here are the different types that are available. 

  • Dwelling coverage. This covers damage to your home and property in the case of fire, lightning, hail, and other types of “peril” as it is referred to in home insurance policies. This coverage will also pay for damages due to vandalism or vehicles. The specifics of your coverage will be listed in detail within your policy, so be sure to read over each policy carefully to compare coverage before purchasing. 
  • Personal property. This is coverage for your possessions within your home, including electronics, furniture, clothing, appliances, and more. If your possessions are damaged due to any covered “peril” you can receive compensation. Standard protection may range anywhere from 50-70% of your dwelling coverage, so these are typically purchased together. 
  • Liability insurance. If you or someone in your family is responsible for property damage or personal injury, liability insurance can cover this. It also covers legal and court costs if a lawsuit is filed. Standard coverage is $100,000 but it is recommended that you purchase coverage of at least $300,000. 
  • Valuable items. If you have valuable possessions, such as jewelry, you can purchase coverage for these items. Standard coverage is very limited when it comes to personal valuables, so it recommends that you take careful inventory of your jewelry and it’s value to purchase coverage that will protect it. 
  • Additional living expenses. This pays for hotel stays, restaurant meals, and other living expenses if your home were to be rendered uninhabitable by a peril such as a fire or storm. You could be displaced for many months if your home needs to be rebuilt or significantly repaired, and you’ll still be required to make mortgage payments, so insurance helps. 
  • Guest medical payments. If a guest is visiting your home and sustains an injury, guest medical payment coverage will provide compensation for medical bills. Even if you are not liable, this can help you avoid a lawsuit or be forced to use your liability insurance. 
  • Renters insurance. If you rent your home, renters insurance covers damages to your apartment or house, as well as liability for incidents. It can also cover damages to your possessions. 
  • Condo insurance. A condo is different from renting an apartment because you actually own a condo. But because it is part of a larger building, it is susceptible to damage beyond your control. Condo insurance covers damages to your condo as well as liability. 
  • Landlord insurance. As a landlord, you should have coverage in case of damages to the rental property you own as well as the loss of rent that may occur if the structure needs significant repairs. 

Deductibles: How They Work and What to Expect

As with most types of insurance, there will be a deductible to accompany your California home insurance. A deductible refers to the amount you pay out of pocket before insurance coverage is paid. For example, if your home insurance policy includes a $500 deductible and you had a $1,500 claim, you would pay $500 and your insurance would pay $1,000. 

Deductibles can range anywhere from $500 to $2,500. In some cases the deductible is a percentage, like 2% or 4% of the total claim amount. A low deductible is good when you need to make a claim, but the lower the deductible, the higher your monthly premium will be. You may be able to save more on your home insurance by going with a policy that includes a higher deductible. 

Get the Coverage You Need From Home Insurance By Castle 

California home insurance is something all residents need. Whether you’re a homeowner, a renter, or a landlord, home insurance is crucial. Mortgage lenders require it, and many landlords require their renters to have it as part of a standard lease. Home Insurance by Castle offers a range of coverage so you can get the right amount for your needs. 

Call (650) 364-3664 today or request a quote. We can create a customized policy for you to ensure your home and possessions are protected. 

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