Living in LA means having home insurance for the area, this of course can mean different things for different people. Usually you will need one of three things:
- LA Home Owners Policy
- LA Renters Insurance
- LA Mobile Home coverage
What is included in your home insurance policy will vary depending on many things. The most important thing to keep in mind is what type of coverage you know you want and what you know you need. Never assume certain things are covered in your LA home insurance only to find out after disaster strikes that you don’t have coverage. For example, some things you may want to make sure are included in your LA renters insurance or home owner’s policy includes:
- Fire coverage and resulting damage coverage
- Flooding even though people assume they will not have this problem in LA
- Theft and even vandalism as the LA riots of 1992 taught many home and business owners
- Land slide protection depending on the location of your home
- Earthquake protection because you never know when even a minor tremor could do some damage to your home or belongings
In fact, make sure you actually have coverage for what’s inside the structure, not just the structure itself. This may also mean you need to get added protection for other structures on your property. For example, if you have a storage shed or detached garage, make sure these buildings are included in your LA home insurance. Not only that, but be sure the contents of these buildings are covered as well.
Things to Know
Based on current market averages, the typical home value in Los Angeles right now is just under $300,000. Obviously, that is a lot of home value to cover and insure. Without insurance, if something should happen guess who pays the damages? That’s right, you as the home owner. Obviously if you are paying a mortgage on your home you are required to have LA home owners insurance. So make sure you have a policy you can actually afford.
If you are getting ready to move to the area and set up a home, LA home insurance should be one of the first things you secure, even if you are renting. Of course, this is where it is important to know a little about replacement value versus market value when it comes to covering your belongings inside the home or the home and property itself.
- Replacement Cost Value RCV – Replacement cost value is generally more expensive but covers the cost of replacing items with an identical or comparable item. The bottom line is you are swapping something of equal value for what was lost.
- Market value or Actual Cash Value ACV – This approach to insurance allows for depreciation. While it costs less to have this type of coverage, it means your five year old sofa may not be worth near that amount any longer even though you have been paying for five years worth of insurance coverage for it.
Neither one is the “right” type of coverage to have. Just be sure to understand the difference for both and get the type of coverage you feel works best for your situation. Of course, there are plenty of other things to know about LA home insurance.
What about Deductibles?
More than likely you have heard the word deductible before. If you have never really given it much thought in relation to your home insurance policy coverage, you may not realize how much it could impact your premium rates. The bottom line is that just the deductible could have a huge effect on your rates so you should get a general idea of what it is and how to make sure you get the deductible you want.
- The deductible is the money you would have to pay on your own in the case of an accident and should you file a claim with your home insurance policy provider. This amount is paid before the insurance company pays their part. So, in some cases if the damage is minimal nothing more than the deductible amount will be paid during a claim. A broken window, for instance, may end up costing no more than the deductible, so you would be paying for the replacement cost yourself.
- The higher the deductible the lower the LA home insurance premiums, generally speaking. The trick is to make sure you do not get too high or too low a deductible. For example, if you have a high deductible, your premiums will be very affordable. However, you will have to pay a great deal out of your own pocket in the event of a claim. You also do not want to take too low a deductible and then have very high insurance premiums to cover.
Getting What You Need
The bottom line is that this is your policy and you should get what you want and need from it. Don’t allow yourself to be talked out of coverage you want such as flood insurance for example. All these little additions may add up to a slightly higher premium price each month, but if disaster should strike you don’t want to be left picking up the tab.
California is a unique state, so you will find you need things such as earthquake coverage when it comes to renters, home owners or mobile home insurance coverage. Always find out what things may be unique to an area you are moving to and be sure to get coverage for it. If you live near an area prone to wild fires, be sure to get extra fire coverage. For Los Angeles, it means having earthquake coverage.
Make the most of your new home here in LA. Get the LA home insurance you need for protection as well as peace of mind. You’ll be glad you did.
