Obtaining Insurance Coverage In California

If you are a newer homebuyer or a California resident that has recently been dropped by your homeowners insurance agency, you have probably noticed that it is becoming harder and harder to find a homeowners insurance policy. Many insurance carriers have actually stopped insurance coverage in the state of California, which is causing concern for many people investing in real estate. If you are located in San Diego, California, and have questions about the recent trends in homeowners insurance, Windfall Insurance Services Inc. is here to help. Continue reading to learn more about obtaining home insurance coverage in California.

How Does Homeowners Insurance Coverage Work?

In order to understand the current issues with homeowners insurance in the state, it is first important to understand how homeowners insurance works. The purpose of homeowners insurance is to help provide financial coverage in the event that a policyholder’s home is damaged due to extreme weather, natural disasters, theft, etc., (however most homeowners insurance policies will not include flood or earthquake coverage). Homeowners insurance is not legally mandated, however, if the property is purchased with a mortgage, lenders will typically require it in order to protect them in case a borrower defaults on the loan. Homeowners insurance will cover the financial costs of either rebuilding or repairing a home that is damaged by vandalism, hail, fire, etc. and will also cover personal property such as furniture, electronics, etc. When purchasing a homeowners insurance policy, a policyholder needs to have sufficient funding to repair the total cost of the home and belongings that need to be replaced.

What Issues Are Currently Affecting Homeowners Insurance Policies In California?

Many larger insurance companies are limiting and even dropping their policies that are written in the state of California, causing major concern for homeowners in the state. One reason for this is due to state regulators not allowing insurance companies to raise their rates high enough to cover the more increasing price of insurance costs and risks. Inflation has caused the prices of labor and building materials to rise substantially, while the risk of losses because of natural disasters like wildfires and hurricanes have also drastically increased. Additionally, many insurance carriers in the state of California are still in a moratorium due to the recent spike in hurricanes and fires, and these factors have all contributed to higher prices for insurance companies. Even with all of these recent changes, however, it is still possible to get homeowners insurance in California with due diligence.

Get The Protection You Need With Homeowners Insurance

If you are located in the area of San Diego, California, and need help finding the best homeowners insurance policy for your unique situation, Windfall Insurance Services Inc. can work closely with you to help you find the right kind of protection. Contact our office today for a consultation.