Tuesday, January 4, 2011

California Insurance Coverages

When searching for California insurance it is necessary to evaluate the risk of the consumer to identify the type of coverage required and how to make the most cost effective decision. Residents of California have much of the same insurance needs as residents all over the country. Health insurance is a priority, along with auto insurance for those who drive, and homeowners insurance for those who own a home and are paying a mortgage.

Earthquake insurance is often not covered under homeowner’s insurance. It is similar to flood insurance in this respect. It is estimated that only 12 percent of homeowners in California actually carry earthquake insurance. Despite decreases in standard policy coverage and larger deductibles, consumers have options when it comes to earthquake insurance. Besides the standard earthquake insurance policies, consumers have the choice of purchasing a stand-alone policy from a separate insurance provider other than the one that holds their homeowner’s insurance policy. Some insurance companies also carry wrap-around earthquake insurance policies. These types of policies supplement the individual’s current earthquake insurance and can reduce their deductible as well as increasing the coverage on the contents.

When shopping for earthquake insurance there are generally two different kinds of protection. The comprehensive single limit policy can be used for all or a combination of assorted coverage including dwelling coverage, coverage of garages or detached structures, loss of rental value, and removal of debris. The standard policy only offers a single limit that covers the dwelling plus limited additional coverage.

When purchasing California insurance, consumers should take under consideration the possibilities of devastating natural disasters such as earthquakes and wildfires. These events occur unexpectedly and for an individual who is not prepared it can create ruinous personal and financial losses. Not only should earthquake insurance be considered, but policyholders should also evaluate their homeowner’s insurance policy coverage to be certain that that their valuables and belongings will be accurately compensated. Homes should be routinely reappraised to assure that the policy covers home improvements, remodeling, renovations, and additions. It is vital for the policyholder to know and understand their policies and to have a clear knowledge of deductibles and what is covered or excluded within their contract.

All policyholders should also remember to store their insurance documentation somewhere safe and easily accessible. It helps to store them in a fireproof and waterproof container or in a separate location such as a bank safety deposit box. It is also advised to leave a copy with a trusted person. Having a copy of the insurance policy and contact numbers for the insurance provider will aid in the aftermath of catastrophic events and help the policyholder file their claim and receive compensation.

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