What San Diego Homeowner's need to know about Insurance

Homeowners insurance is a contract between a homeowner and an insurance company. People want to protect the value of their property. This insurance exists because your home is a huge investment, typically the largest purchase a person makes in a lifetime. The insurance company guarantees to reimburse the owner for losses that occur due to human-caused damage or natural disasters as long as the owner meets policy requirements and pays the required premiums.

Homeowners insurance is almost universally required by mortgage companies with the purchase of a home. This is because the investment is almost as big for them as it is for you. They want to make sure your home in La Jolla is protected from major damages so that if you are ever unable to keep up with your payments, the lender can then reclaim ownership and be able to sell it fairly easily. And even if you own your home outright, a good insurance policy is still the best way to protect the value of your home in the face of the unexpected.

A basic homeowner’s insurance policy protects the owner against any property damage that results from things like fire, lightning, wind or hail storms. It will also provide for motel and food costs if you are forced to leave your home while such damages are repaired.
A typical policy, however, does not cover flood or earthquake damage. Because these issues are usually specific to certain regions of the country and can cause extreme damage, these can be purchased as separate policies. If you live in a flood zone or near an earthquake fault line like San Diego you may be required by your mortgage company to carry these protections.
A basic policy will also cover your home in Del Mar against loss from theft or vandalism as well as reimbursement for personal property destroyed in natural disasters. It will also provide for something that many people may not normally associate with home protection – liability coverage for lawsuits brought against the owner by people who were injured on the property. This includes the cost of legal defense up to the allowed policy limit. Additionally, most policies will have a provision that will cover the basic medical expenses for the parties.

Here are some tips on saving money on homeowner’s insurance:

Raise your Deductible: Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. For example if you can afford to raise your deductible to $1,000 if you own a home in Encinitas, you may save as much as 25 percent.

Maintain a good credit record: Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

If you’re thinking about selling or buying a new home please contact Nick Alameddin , or call me at 760.802.4166. I specialize in San Diego Coastal Homes.
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