subject: Consider Your Location When Insuring Your Home [print this page] Consider Your Location When Insuring Your Home
Selecting the right home insurance policy can be challenging. There are many insurance companies offering homeowners policies. Determining which policy among the many that are available is best for your needs is daunting. Understanding all the information on policies and companies available in Orange County, California, will help you make the correct choice for your needs.
There is important information to discover and to consider in making a decision on a policy. The first item to consider is your home's location. In which state and county are you located? In addition to the basic factors to consider in a policy ,there are the specific factors you need to consider for your home's geographic location.
Basic home insurance coverage does not include coverage of flood damage or the destruction caused by earthquakes. It might not cover mudslides and wildfires. In Orange County, California, having earthquake coverage is a must for protecting the financial investment you have in your home. In mudslide or fire prone areas you may also
need extra coverage added to the general homeowners policy selected in order to cover potential damage caused by one of these disasters.
General coverage should include compensation for damage to the physical structure, any personal property damaged, liability coverage and money for relocation costs if you are displaced by any source of damage that is covered. Homeowners are not required by law to obtain coverage but it is sensible to protect your home, which is your largest single financial investment. If your home has a mortgage on it, the mortgage company or lender will require coverage to reimburse their loss in the event of any damage to the property. You will not be able to obtain a mortgage without it.
Your local insurance agents, whether they represent local insurance companies or national ones, can inform you of conditions locally and regionally that affect insurance rates. They should also help you consider building costs (which are figured by the square foot)for replacement or repairs to your home if damage occurs. You also need to consider average home values in your area when choosing the replacement amount for which a policy will cover you. Your agent can advise you on how much coverage to carry to see you through should the worst happen and you lose your home to one of the covered causes of loss. A good rule of thumb is to carry coverage for two and one half times the replacement cost of your home and your personal property. Once you know how much coverage you need, choose the policy that provides that coverage at a price to fit your budget.
Selecting a policy that provides not only the correct basic coverage but any extra coverage you might need will give you peace of mind and financial protection.
