California is a natural wonder. It has a coast line, mountain ranges, valleys, deserts, grasslands, and much more. The homes here are built to exploit the natural scenery. In doing so, Californian homes are also subject to a multitude of natural and manmade disasters.
Earthquakes, drunk drivers, floods, burglars, wildfires, wind, landslides, rising oceans and blizzards are just a few of the disasters you’ll need to be prepared for in California. Many of these hazards are protected against in home owner’s insurance policies. Two of the main exceptions are earthquakes and floods. Earthquakes can occur anywhere on the San Andreas Fault line which runs through California, from San Francisco to Los Angeles. The possibility of flooding exists throughout California, but is a more prominent threat for homes near levees.
The two main policies which will be sold to homeowners are the HO-2 and HO-3 insurance policies. The HO-2 insurance policy protects your home from only the perils or disasters named specifically in the policy. This is usually cheaper for California home owners but also does not provide the best coverage. The HO-3 insurance policy is more expensive but provides coverage for all disasters, except those excluded in the policy. For California home owners, you’ll need extra coverage to make sure you have the best protection.
The government has set up the California Earthquake Authority to help provide earthquake insurance for California residents. The premium for such insurance varies depending on the location of the home. Homes situated near the San Andreas Fault line have a higher premium. For Example, Earthquake insurance premiums are higher for homes in San Francisco than in Sacramento or LA, but not extremely higher than homes in San Bernardino where the fault line continues south through.
Flood insurance is also necessary for many California home owners. Sacramento home owners pay more for flood insurance than San Francisco home owners, since Sacramento is closer to sea level and lies near the California delta waterways. You can also enter your home information at floodsmart.gov to determine the level of flood risk your house is suspect to, which can give you an idea of whether flood insurance is something you’d like to invest in.
For further information, discuss California home owners’ insurance policies with a professional home owner’s insurance provider. It’s never too much to protect your home investment from disaster. If you want to spend less, choose your Californian home wisely to avoid perils not covered in your primary California home Owners Insurance policy.