If you are in the process of buying a home, you probably have questions concerning your coverage. Here are a few of the most common questions we receive as well as their answers.
Does your homeowners insurance cover against losses due to fire, lightning, tornadoes, windstorms, hail, explosions, smoke, vandalism, earthquakes and theft? Your homeowners insurance will usually cover a large number of threats, including all of the above with the exception of earthquakes. You should always consult with your agent; however, to make sure you are being provided with the level of coverage you need.
Earthquake coverage is available as an additional coverage to your homeowners policy. Your agent can help you determine whether you should purchase earthquake insurance based on your situation. In earthquake prone areas such as ours, the cost of this insurance is one of the considerations you will need to assess.
The California Earthquake Authority (CEA), a privately-funded, publicly-managed instrumentality of the State of California, issues the majority of residential earthquake insurance policies sold in California. CEA insurance policies are designed to repair or rebuild your home if it suffers significant damage from an earthquake. You may purchase a CEA policy only through the CEA’s 18 participating insurers, such as Farmers Insurance, and only if you have purchased a residential property fire insurance policy (such as a homeowners, condominium, or renters policy) issued by one of the participating insurers.
How much insurance do I need?
You need enough insurance to cover the cost of rebuilding your home if it is destroyed, to replace your personal possessions if they’re lost or damaged and to protect your family from liability lawsuits.
A pipe bursts and water flows all over your floors. Are you covered? Homeowners insurance typically covers accidental discharge of water from a plumbing system. We recommend that you check your plumbing and heating systems once a year. While you are covered for this type of damage, you will certainly want to avoid the mess and headaches.
Is your jewelry covered by your homeowners policy? In most cases, you will need to purchase a personal articles floater. This extends protection for your jewelry when its value is higher than the limits stated in your homeowners policy. Your agent should be able to help determine if you need to purchase floater coverage. If you have other questions concerning homeowners insurance, please feel free to contact my office.
Gregg L. Goodman, LUTCF is the CEO of the Gregg L. Goodman Insurance Agency, Inc. He is an agent of Farmers Insurance and provides life, health, homeowners and auto insurance, as well as commercial insurance programs. He can be reached at 661-254-6739.