2021 Best Cheap Home Insurance in California
Overview of home insurance in California
Finding the best California home insurance can be tricky, mainly because there are so many options. Along with a low rate, here are some of the other factors homeowners should consider when looking for coverage:
Different types of home cover
There are six different types of fonts specially designed to cover traditional brick and mortar homes, from basic fonts to fonts with all bells and whistles. The best home insurance companies offer them all. Before shopping, it is beneficial for a homeowner to list all the things that they are trying to protect about their home. For example, if an owner has a separate structure in the yard that they use as an art studio, they should be included on the list.
The thing about a simple insurance policy is that it can be cheap, but it’s unlikely that it will offer a full range of coverage. If a homeowner sleeps better at night knowing their coverage will rebuild their home if destroyed, no matter how much it costs, it may be worth paying a higher premium for full coverage.
Amount of the deductible
A deductible is an amount that the owner must pay for a claim. Let’s say an owner has a kitchen fire that will cost $ 15,000 to repair and their deductible is $ 1,000. This means that the insurance company will pay $ 14,000 of the cost of the repair and the owner will pay the remaining $ 1,000.
One way to get cheap home insurance in California is to take advantage of all possible discounts on policies. It is possible to believe that one policy is more expensive than another until the discounts are factored in. Almost every insurance company has a list of discounts, and they cover everything from a job a homeowner has (or has had) to whether their home is part of an HOA. In other words, almost everyone is eligible for one or more home insurance discounts.
What are the most common home insurance claims in California?
Each region is known for a different set of natural disasters. The Midwest has its tornadoes and ice storms, the Southeast faces hurricanes, and California often makes the news for wildfires. Forest fires are devastating, but despite the media coverage they receive, they tend to be confined to a relatively small part of the state. The most common insurance claims tend to be more mundane, the types of claims you’ll find elsewhere in the country. Here are some of the most common home insurance claims in the Golden State:
Fire and lightning
No matter where a house is located, it is difficult to avoid the inevitable thunderstorms accompanied by lightning. Whether lightning damages a roof or causes a fire, this is one of the costliest and most common claims.
A single dog bite costs on average almost $ 45,000 and is another common claim.
Unless a homeowner lives alone and never allows another person into the home, there is a risk that someone will be injured on their property. It can be as simple as falling down a few steps and being in the wrong place at the wrong time when a garden patio collapses. Personal injury is one of the main insurance claims.
Wind and hail
People tend to think of California as surf, sand and sun. But like every other state, California has its fair share of thunderstorms, and thunderstorms cause a large number of wind and hail related claims. Any homeowner looking for insurance in the state should make sure that damage caused by wind and hail is covered under their policy or spend a little more on a special rider that provides the necessary coverage.
Water damage and freezing
Many areas at higher elevations receive their fair share of ice, snow and freezing weather conditions. That alone helps explain why water damage and freezing are common complaints.
California home insurance coverage options and discounts
Buying the “perfect” homeowners policy is all about paying as little as possible for the highest level of coverage. It’s about looking at potential coverages and comparing them to the costs, including any discounts available. Here we list the coverage and discount options.
The fact that there is a wide array of coverage options available means that homeowners can choose until they find the level of coverage they are most comfortable with. They understand:
HO-1: The most basic type of policy, HO-1, covers the house and personal effects at their actual cash value against typical risks. Some insurance companies no longer offer this type of contract.
HO-2: This policy extends over the HO-1 by providing cover against more than basic risks. It also includes protection against freezing, electrical surges, volcanic eruptions and damage from the weight of ice, snow or sleet.
HO-3: One of the most commonly purchased forms of coverage is the HO-3 policy. It covers a homeowner against a wide range of risks, unless otherwise excluded in the policy.
HO-4: Covers tenant insurance and does not apply to landlords.
HO-5: An HO-5 policy introduces certain bells and whistles, including replacement of home and personal property at replacement cost. It also allows the owner to include coverage for valuables like art, jewelry, and electronics.
HO-6: Coverage for condos, including details important to condo owners, such as loss assessment coverage.
HO-7: Covers mobile homes, structures that are generally not covered by a traditional home insurance policy.
HO-8: Usually reserved for older homes that may not meet the requirements of another policy. This can be due to the type of wiring, plumbing, or roofing installed in the house.
Each insurer offers its own set of discount options. Here is a sample of the most common:
- New house construction
- Home and car package
- Payday advance
- Home upgrades
- Home security system
- Company loyalty
- Professional affiliation
- Non smoker
- Membership of the Homeowners Association (HOA)
5 cheapest cities in California for home insurance
There are several reasons why it is more or less expensive to insure a home. This could be due to the crime rate in a city, the proximity (or distance) of a house to a fire station, or simply the value of houses in a particular area. Here is a list of the five cheapest cities in California for home insurance: