We’ve got a list of great tips for picking the right home insurance policy for your home. Policy type choices, coverage choices, deductible choices and recommendations for your home insurance policy. Home insurance doesn’t need to be confusing or difficult. Rancho Cal Insurance Services is happy to help you make home insurance easy. We will explain the types of home insurance policies, home insurance coverages, and home insurance deductibles so that you can choose the home insurance policy that is right for you.
Home Insurance Policy Types: Many variables will determine the type of home insurance policy that you need. The build type, occupancy type, and ownership are a few factors that will be used to find the right home insurance policy for you.
- Owner Occupied Home: You own your home and you live in your home full time.
- Seasonal/Secondary Home: You own your home and use it only on a seasonal or secondary basis. This could be your vacation home at the lake, beach, mountains, etc. If you also occasionally rent this home on a short-term basis (Airbnb, VRBO, etc) make sure you mention this to your insurance agent because not all insurance companies will allow this usage. Make sure your policy is with a company that will allow the short-term rental use if applicable.
- Landlord home: You own the home, but you do not live there and the home is occupied by your tenants. This could be occupied by long-term (1 year lease) or short-term tenants. It’s important to mention this to your insurance agent. Not all Landlord policies will cover short-term tenant usage.
- Manufactured /Mobile Home: A home insurance policy specifically tailored for manufactured or mobile homes. Can be owner occupied, seasonal, landlord, or for a renter.
- Condominium: A policy specifically for a condo unit owner. Typically, the exterior of the structure is not included in the policy, just the interior. Can be owner occupied, seasonal, landlord, or renters.
- Renters: You do not own the home or apartment that you live in. You would need a Renters policy that only covers your personal belongings and liability; you would not insure the structure.
- Vacant: A special type of insurance policy for homes that are vacant.
Home Insurance Coverage Options: Many optional coverages exist for home insurance policies. Examples are Water Back-up coverage, Home Systems coverage, Identity Theft coverage, and many more. You should always talk to your insurance agent to see what options are available. Below are coverages that appear on most home insurance policies.
- Dwelling Coverage: This is the amount of coverage for the structure. Options may also be available to extend the Dwelling Coverage by 25% or 50%.
- Separate Structures: Coverage for structures not attached to the home. This is typically a certain percentage of the Dwelling Coverage and is automatically included in some home insurance policies.
- Personal Property: Coverage for your personal belongings. All of those items that you take with you when moving to another home. Note that there are sub-limits for many items including jewelry, furs, firearms, etc. Options exist to increase these coverage limits for an additional premium.
- Loss of Use: After a covered claim event, this is additional coverage to assist with additional expenses for temporary housing, food, etc.
- Liability: Protection for the homeowner if a visitor is injured on your property and you are held liable for their injuries.
Home Insurance Deductibles
Every type of home insurance policy has a deductible and the amount of the deductible is up to you to choose. Deductibles can be a stated dollar amount or they can be a percentage amount. If they display as a percentage (1%, 5%, etc.) know that this is a percentage of the Dwelling Coverage amount shown on your home insurance policy. It is not a percentage of the amount of the claim. Depending on the amount of Dwelling Coverage on your policy, a percentage deductible can actually be a very high deductible option. The higher deductible that you choose will result in a lower annual policy premium, and likewise, choosing a lower deductible will result in a higher annual policy premium.
Rancho Cal Insurance Services is here to assist you in finding the right home insurance policy for your needs. We can assist homeowners and renters throughout California find just the right policy for their home insurance. Temecula, Murrieta, Menifee, Winchester, or anywhere in California we are here to help you make home insurance easy.