Property insurance

Many people scoff at the idea of having homeowners insurance until they need it most. From natural disasters such as wildfires and mudslides to electrical fires and accidents resulting in structural damage, there’s plenty that could happen to your home that makes having solid coverage worthwhile.

Whether you’re a long-time homeowner in California, or if you’ve purchased your very first home, it’s important to understand the ins and outs of an average California homeowners policy:

• Unlike auto insurance, it’s not mandatory to carry homeowners insurance. However, your lender may require you to have coverage as a condition of your mortgage. This way, both you and your lender have protection against unforeseen circumstances.
• Although your insurance policy covers a lot of things, there may be a few exceptions. For instance, you may have to purchase a separate flood insurance policy, as most insurers do not include it with their regular homeowners coverage.
• Whether your policy will completely and totally replace your home in the event of a loss depends on whether it’s a “replacement cost value” policy (which covers the actual costs of complete replacement) or an “actual cash value” policy (which only offers the fair market value or policy limit, whichever is less).
• Homeowners who are not able to find adequate coverage on the open market may be eligible to receive special coverage under the California Fair Access to Insurance Requirements (FAIR) Plan. This step is usually a last resort for homeowners. Under most circumstances, independent agencies like THINK Ins. & Financial Services can help customers find and compare quotes for affordable insurance plans from a broad range of carriers.

A solid homeowners insurance policy from The CIA, an independent agency is the best way to protect your property and your family from whatever life throws at you. When you compare online quotes with us, you’ll find a variety of plans from multiple carriers that cover your most valued investments while saving you money.

Renting out a property is different from basic home ownership because you have a different set of responsibilities. As a landlord, your primary responsibility is to the dwelling and the rental practices. As a result, the insurance coverage that you may need California, may not be as extensive as a basic homeowners plan.

As a landlord, the policies that you need for any properties that you own and rent out to others are not the same as the type of coverage you need when you live in a house. As a landlord, you are not responsible for any of the personal belongings that are kept in the dwelling. You are responsible only for the structure of the property.

Depending on your situation and preferences, you may need dwelling fire coverage or a policy that is designed for landlords. Dwelling fire policies will pay for the damage to the structure if a fire occurs, but it will not pay for any property that was in the building.

The amount of coverage that you want or need may vary. Insurance plans may protect against liability concerns, or they may protect the structure of the property or the surrounding property if your rental has a yard.

By working with The CIA you can narrow down the options and ask a variety of questions so that the plan you select is appropriate for your needs. An agent can explain the terminology, the coverage and the items that are not included in the policy.

Landlords need a different type of insurance coverage to protect personal assets. Even though the belongings inside the property are not a concern, you will want to protect the structure and the building from fires or similar problems. An independent agent from The CIA can make it easier to find the best plan for your needs.

Renters insurance is not only reliable, but it's also affordable and can cost you less than you think.

Are you renting an apartment, condo, or a home? 

Not only does renters insurance cover your belongings, it also typically includes a few types of coverages such as family liability coverage, additional living expenses, and guest medical protection.

When you buy a renters insurance policy from The CIA, you’ll gain the peace of mind that comes with knowing you have quality coverage from an agency you can trust.

If you're renting an apartment or home, you'll need an insurance policy to cover your belongings. Your landlord's property insurance policy covers losses to the building itself; whether it's an apartment, a house, or a duplex. Your personal property and certain liabilities, however, are covered only through a renters insurance policy that you, as a tenant, have to find and pay for. While 95% of homeowners have a homeowner's insurance policy, only 41% of renters have renter's insurance, the most up-to-date figures (2018).

Why do so few renters have insurance? One explanation is that many people incorrectly assume they are covered by their landlord's policy. Another reason is that people underestimate the value of their belongings. If you add up the value of just your clothing and electronics, it probably wouldn't take long to get into the thousands of dollars.

One more often overlooked reason is liability: If someone is injured in your house—a friend, neighbor, or the pizza delivery person—they could sue you. Even if you thought you didn't need insurance, here are six good reasons why you should get a renter's insurance policy.

• When renting a home, you'll need an insurance policy to cover your personal belongings known as renter's insurance.
• Landlords have property insurance but those policies cover only the building, not your personal items within.
• Many renters don't purchase renter's insurance, either because they don't think it is necessary or believe they are covered under the landlord's policy.
• Your landlord may require you to purchase it.
• The cost of renter's insurance is relatively low.

THE BOTTOM LINE

Renter's insurance provides coverage for your personal belongings, whether in your home, car or with you while you're on vacation. In addition, renter's insurance provides liability coverage in case someone is injured in your home or if you accidentally cause injury to someone.

Be sure you understand what your policy covers, and ask your agent about available discounts, deductibles, and coverage limits. For example, be sure you know whether your insurance provides replacement cost coverage (RCC) for your personal property or actual cash value(ACV).

Condominium insurance is similar to rental insurance in that the unit owner is covered. This coverage includes personal property, damage to the interior of your unit, as well as any improvements. Since you own your condo and do not have a landlord, your condominium association usually purchases the insurance for the corridors and building structure itself. As the owner of a condominium in California, you may want to consider purchasing a provision that covers you for particular assessments your condominium association makes. You need to make sure you are insured in the event of an earthquake.

All properties are different. Because condo policies vary, you should consider seeking the advice of an independent agent at The CIA. As your independent agent, we can help you compare condominium insurance quotes. This makes it easy for you to find an insurance policy that meets your needs and is easy on your budget.

Following the fires in California, many affected homeowners experienced one of the following insurance problems:

• Inadequate insurance-to-value, which means that the dwellings were underinsured
• Increases in the costs of construction

The increase in costs came about because when homeowners rebuild, they must comply with the new California building codes. Another factor that raised the costs of rebuilding was the need to build new foundations (due to the extreme heat of some fires) and remove debris.

Insure your condo and its contents. As a guideline, the contents limit is usually about 50 percent of the dwelling amount. You are the only one who knows the replacement cost of your personal possessions. When you calculate your contents limits, account for all of your personal property. It is important to note that some kinds of personal property have limited coverage.

If you decide to purchase a "replacement cost policy," your chances of being able to rebuild your condominium completely are better. With that said, there are numerous replacement cost policies available. Make sure that the replacement cost policy you choose meets all your needs.

 Manufactured homes require special policies designed for manufactured and mobile homes.

 While the terms “manufactured home” and “mobile home” are often used interchangeably, they do differ. Both have been built in factories, and both rest on a movable chassis. The distinction comes down to when the home was built. 

Mobile and manufactured homes are typically covered with a mobile home form policy. Mobile and manufactured home policies are virtually identical to standard homeowners insurance policies, and, just like standard homeowner policies, they provide dwelling coverage, personal property coverage, and liability protection.

Still, even though the two policies are similar, you can’t insure a mobile home or manufactured home with a standard homeowners insurance policy. You must buy a policy that’s specially designed for a mobile or manufactured home.

Mobile home insurance is generally more expensive than standard homeowners insurance. That’s because mobile and manufactured homes are less able to withstand incidents such as floods and fires, more susceptible to wind damage, and tend to be at a higher risk for theft and vandalism.
 

Whether you own a modular or manufactured home, your insurance costs will depend on a variety of factors, such as:

• The home’s age, size, and value
• The value of your personal belongings
• The physical address of the home (location-based factors such as the risk of severe weather, floods, and wildfires—as well as local crime rates—affect the cost)
• The building materials used
• History of repairs and renovations
• Existing claims on your home policy
• The home’s safety devices, such as smoke detectors, fire extinguishers, and sprinklers
• The home’s security features, including deadbolts, alarm systems, security gates, and fireproof safes
• Whether you own or rent the lot where the home is located (if it’s a manufactured home)

The cost will also depend on the coverage limits and deductibles you pick. Most of the time you pay less if you choose lower coverage limits and a higher deductible. Conversely, you pay more if you elect higher coverage limits and a lower deductible.