California Homeowners Insurance Rates

Your California Homeowners insurance rates provide financial protection against many disasters that may befall your home.  Having a standard California Homeowners insurance policy with low rates can be challenging to find even for the most patient, but it is necessary to have because it insures the house and the contents inside the house.

CA Homeowners insurance rates come in a package policy, which essentially means that it covers damage to your property and any liability or legal responsibility for any damage to your property or to others, including damage done by pets.

In most cases, most major disasters are covered by your Homeowners insurance rates in California, but like anything, there are exceptions.  In California, the most significant damage to homes comes in the form of earthquakes, floods, and poor home maintenance.  It is necessary to buy separate policies for flood and earthquake protection.  Keeping your home up to city standards is your own responsibility.

Levels Of Coverage For California Homeowners Insurance Rates 

Many wonder what kind of coverage is available when shopping for California Homeowners Insurance Rates.  There are 3 different levels of coverage that you have the option of buying when purchasing your CA Homeowners insurance rates.

1. Actual Cash Value:  This is the lowest amount of coverage you can choose when buying Homeowners insurance rates in CA.  It pays for coverage on your home and possessions minus their depreciated value.
2. Replacement Cost Coverage:  Replacement cost is the middle grade policy coverage for homeowners in California because it covers the cost of the house and its possessions at buying value.  There is no depreciated deduction associated with replacement cost coverage.
3. Guaranteed Or Extended Replacement Cost Coverage:  Guaranteed replacement cost coverage is the heist level of protection you can purchase when looking at California Homeowners insurance rates.  This policy pays whatever it costs to rebuild your home as it stood before a disaster (i.e. fire), even if it does go over your policy limits.  With the way construction costs are skyrocketing this is a good plan to have because those costs will be covered when attempting to rebuild your home.

The extended replacement cost coverage policy is a small downgrade from the guaranteed replacement cost coverage.  It often pays a certain percentage over your limit to rebuild.  In most cases, it is 20% to 25% over the limit of your policy.  If your CA Homeowners insurance rates pay for a policy worth $100,000 worth of coverage, you’re entitled to an extra $20,000 or $25,000 over the limit, respectively.

How To Save Money On California Homeowners Insurance Rates

Saving money on your California Homeowners insurance rates is almost as important as making sure you have enough coverage on your home.  Many wonder how it is possible to save money to get the cheapest CA Homeowners insurance rates on the most expensive policies.  Just remember, it can be done!  Not only can it be done with the most expensive policies, it can be done with the cheapest as well.

Here are 10 easy tips that you can start using in order to save money on your Homeowners insurance rates in California:

1. Explore Your Options:  Taking the time to explore all the companies that offer CA Homeowners insurance rates is the best way to save yourself money.  It is important to remember that all the policies look the same on paper across the country, but they are not all the same prices.  Quotes can vary as high as $500 between companies in California alone!  That’s why it is so important to do your homework and explore all of your options.  It’ll save you money in the long run.
2. Raise That Deductible!:  Most people don’t realize that raising the deductible on their Homeowners insurance will lower their premium.  If you can afford to raise your deductible to $1000 it is possible to save up to 25% on your overall insurance premium.  However, don’t raise your deductible to a price that you can’t pay out of pocket in the event of a disaster.
3. Rebuilding Costs Vs. Overall Costs: It is important to understand that the land underneath your home isn’t vulnerable to the types of peril that your home is insured for.  Theft, windstorm, and hail don’t really apply to the land underneath your home, so if you want to save money, don’t include the money that you paid for the land your home sits on.
4. Make Your Home Disaster Resistant:  Ask your insurance provider if they can give you discounts for installing storm shutters or even reinforcing your roof.  The more disaster resistant you home is, the more like it is that you’ll be able to find cheaper Homeowners insurance rates in California.
5. Home Security:  Sometimes even upgrading or installing more security devices can save you a significant amount of money on your CA Homeowners insurance rates.  Some companies may offer you up to a 20% discount if you install fire sprinklers and a security system that is linked to the police station, fire department, and other monitoring stations.
6. Senior Discounts:  Some companies can offer up to a 10% reduction of your premium if you’re over the age of 55.  The truth of the matter is that retired people have more free time to maintain their homes and are less likely to be burglarized.  Sometimes it pays to grow older!
7. Credit Scores And Insurance Rates:  Yes, it does matter.  The higher your credit score, the less of a risk Homeowners insurance companies will see you.  Pay your bill on time, every time and you’re in the running for some cheaper CA Homeowners insurance rates.
8. Long Term Coverage With The Same Provider:  Being with the same insurance company for several years can also help save you money on your Homeowners insurance rates in California.  After 3 to 5 years you may be eligible for a 5% discount and up to 10% if you stay with the same company for six years or more.
9. Pay In A Lump Sum: Many insurers will give a discount for paying your home insurance bill in a lump sum.
10. Consolidate:  When looking at rates for your CA Homeowners insurance also look into insuring your automobiles with the same company.  In many cases, having more than one policy under the same company entitles you to a discount.  Just make sure the combined price is lower than the two prices separately.

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