California Home Insurance
For California residents, the first thing that may come to mind with protecting their homes is earthquake coverage. According to the U.S. Geological Survey, there is a 70% probability that an earthquake of magnitude 6.7 or higher will hit the San Francisco Bay area during the next 30 years.
True, earthquake protection is critical, but consider other risks that you can also protect your home from:
- Wildfire damage is a threat each year in California. According to the Federal Emergency Management Agency (FEMA), wildfires are responsible for the destruction of thousands of homes and hundreds of acres each year.
- Too much rainfall can lead to mudslides which can literally wipe out homes that slide down the side of a mountain.
- Drought is an issue because it has serious repercussions on the likelihood of wildfires occurring.
- Crime rates are generally higher in cities, so you need to be aware that insurance coverage is necessary in the event of theft.
- Water damage claims, including mold damage, in California over the years have driven up home insurance rates. Mold damage has become more prevalent – in fact, the Personal Insurance Federation from Sacramento reports that the top two states for mold claims are Texas and California.
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While a comprehensive home insurance policy provides coverage for fires, additional policies must be obtained for flood and earthquake protection. Be sure to read your policy carefully to fully understand the coverage and any exclusions. For example, earthquake and flood are usually not included in a typical home insurance policy. Consider including this additional coverage if you are in a high risk area for these hazards.
Periodically review your insurance policy to ensure that it is up-to-date with your home’s most recent renovations or improvements. In 2003, wildfires burned 700,000 acres in Southern California. Most local homeowners were protected by their home insurance policy, but for policies that weren’t updated, reimbursements came up short.
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Home Insurance Basics is not an insurer and cannot issue home insurance policies. This site provides free information about home insurance policies and companies. The companies detailed have not endorsed or sponsored these pages. Products and services may not be available in all states.
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