If you are a resident in Los Angeles and a home owner, it is important you get home insurance coverage. Insuring your home and the property in it is the best way to keep yourself safe incase of any unforeseen circumstance. While it is important to get insurance, there are things you must know about home insurance policy in Los Angeles CA, that will help you make the best decision.
It is important you know as much as you can about the rules and rights you are entitled to before you purchase your home insurance. There are so many factors that will determine the type of home insurance you need to purchase. The type of house you own and the location of your residence are some of the things that are considered.
There are some properties you might have that might require you to get a premium to cover them. Also some locations require more cost in home insurance purchase than others. It is also important to know that there are some destructions on your property that will not be covered by your insurance.
Having the necessary information will help you choose the best insurance company that will insure your home and also the type of insurance you will need.
What The Home Insurance Policy Covers
While some of the things that are covered by your home insurance is determined by the insurance company you choose to go with, there are some basic things that are mandatory for every insurance company to cover.
1. Damages To Your Home (Interior & Exterior)
According to the California insurance policy, the insurance company is required to compensate the home owner in the event of damages due to fire, hurricane, lightening and vandalism. The insurer is mandated to compensate the home owner for every other disaster listed in the insurance in order for the home to be repaired
The home owner should take note of the type of destruction listed in the insurance portfolio that can be covered because there are some type of destruction that are not covered by regular insurance cover. The home owner would have to pay extra to get those coverage.
Items like clothing, home appliances and other furniture are usually covered by your insurer when they are destroyed in an insured disaster. However if you are a collector of high price items like fine jewelries, art work and designer clothes, you will be required to pay extra to have these items listed in your insurance cover.
2. Hotels and Home Rentals
Wondering what I mean by this? well here is the simple explanation. When you purchase the additional living expenses coverage, your insurance company is required to reimburse you for the amount spent on rent, hotel room, and even restaurant meals if you are forced out of your home due to damages.
While you wait for repairs to be made to your home, this policy which is daily would cover your living expenses including accidental cost. This daily coverage which lasts for a day can be extended by the home owner if he pays more for coverage.
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3. Personal Liability Coverage
One other thing you need to know about home insurance policy is that your insurer can protect you from lawsuits filed by others. The personal liability coverage covers medical expenses caused by an accident that happens in your home.
This means if your neighbor is suing you for example for pain and suffering caused by a broken lamp in your home, the insurance company would pay for the claim. It even covers your pets, therefore if your dog bites your guests or neighbor the insurer will pay for the medical bill.
If this accidents happens with your kids in your neighbors home the insurer will also pay the claim. The coverage you will have will be determined by the protection you pay for.
In California the policyholder protection legislation stipulates how the insurance company should deal with the insured. The laws state what the insurer is permitted to operate when when the insured property is harmed and a policyholder files a home insurance claim.
These laws are strict and stated in California Insurance Code, and the California Code of Regulations. Some of these insurance companies tend to disregard these laws when dealing with their client. Incase you don’t know about the California home insurance right, here are some of them.
A. The insurance company you decide to use is required by law to serve you in good faith at all time. That means the insurer must consider your requirements and deliver with all honesty the information you need about the insurance you are being sold.
There should be good communication between the insurance company and the home owner, including in person conversation. They should furnish you with the adequate information about your claim, phone conversations and emails should be exchanged regularly.
B. The insurance company should not make any statement that is misleading or can be misrepresented. No insurer may falsify “relevant facts or insurance policy clauses relating to any coverages at issue” to a “claimant.” [California Insurance Code 790.03(h)(1).
C. The insurer owes the insured prompt and timely communication. As a law your insurance company is mandated to reply to your messages not later than 15 calendar days after it was sent. The response must be given with all the information that is known as at the time of the response.
The home owner should note that It is important to communicate with your insurance via email in order to keep proper track of things said and when they were said.
D. Your insurance company is not required to request for secondary proof of loss(unreasonable proof of loss). The insurer cannot mandate the home owner to provide receipts when images and videos of damages have been tendered.
The home owner can compile a list of items that are to be insured and not required to complete this list using the exact list provided by your home insurance company.
E. No insurance company is allowed to discriminate an insureds claim based on age, religion, race, gender, physical disability and any other sect they might fall into.
F. While it is the duty of the insurance company to carry out the appropriate investigation before a claim can be paid. The insurer has no right to use intrusive tactics to gain information. They are not required to make unreasonable request to the insured. The insured has the right to decline to give information that are intrusive and unreasonable.
G. The insurance company is required to compensate the home owner using the different type of home owners coverage. This can be in actual cash value of your loss. It can also be replacement cost which is actual cash value of loss without the deduction of depreciation.
Then there is the guaranteed replacement cost, which covers the cost of repairs to your home which can be more than the policy limit.
These things listed are the basic things you should know about home insurance policy in Los Angeles, CA. As long as you are equipped with this information you are guaranteed of choosing the best home insurance provider that will suit you.