If you’re currently living in California or thinking about moving to “The Golden State,” you should be aware of the potential dangers to your home. Wildfire and earthquakes are only but a few of the possible disaster waiting to strike and the only way to be properly protected, is by having California homeowners insurance from california-insurance.net.
There are many factors in how insurance in California is calculated. California law states, every insurance company can decide how it calculates their own rates, which then must be approved by the California Department of Insurance (CDI).
The main role of the CDI is to make sure all rates are competitive and that companies are not taking advantage of their customers. This also includes monitoring rate changes. California law states insurers need to provide their customers of any rate changes within 60 days before the beginning of changes to their premiums. Homeowners are given the opportunity to either accept the new changes or cancel their coverage.
CDI is a great resource when looking for information about homeowners insurance, but it shouldn’t be solely depended on. You should still do your own research and get your own quotes for comparison. You could also use an insurance broker to help you better understand the needs of your home, especially if you are new to the area.
Homeowners insurance is divided into two sections, property coverage and liability coverages. It’s very important to know what kinds of coverage are available to you and exactly what is covered under each clause. Never make any assumptions when dealing with homeowners insurance. If you aren’t sure about something, you need to ask for clarification. The last thing you want is to suffer a catastrophic accident and not be covered by your insurance company.
In California, your insurer must offer you the option of earthquake coverage by law. Whether you take the coverage or not is entirely up to you, but it must be offered.
It could be in your best interest to use an insurance broker, as they may have intimate details on the industry and be able to provide you with a cheaper premium, than you could find on your own. They should also be able to walk you through all the coverage options of your potential insurance plan, so that you have a fundamental understanding of every provision. If you decide to use a broker, make sure they are a legitimate insurance broker. Don’t be afraid to ask to see their credentials.