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What Types of Homeowners Insurance Policies Are Available in California?

homeowners insurance california

The most popular is called HO-3 homeowner’s insurance, which covers “open perils”, or protection against disasters, fire, theft, tornadoes, etc to the property. This type of HO-3 homeowner’s insurance policies in California can also insure personal belongings – but only gives “named perils” coverage for them. This means that if something happens to your personal belongings from a disaster that is not covered, it will not cover the personal belongings in that case. In other words, the property can have more protection than your personal property from disasters.

Another homeowner’s insurance policy is HO-5, which covers “open perils” for the property and your personal belongings. This can give you more protection for both since it can have a wider range of coverage and lists of disasters covered for personal belongings. Not all insurance companies offer this and the coverage can vary. It is best to clarify the coverage amount with a homeowner’s insurance expert to be sure.

Also, condo or co-op owners need to look into a HO-6 policy, which covers protection from disasters, including your personal belongings and personal liability. To clarify if you need this type of policy, and its specific coverage, contact a homeowner’s insurance expert provider.

If you are unsure which policy you currently have, or which type of homeowner’s insurance policy you need, you should talk to an insurance expert to make sure you are currently on the right type of plan for the coverage you need.

With each type of insurance policy, you have 3 options for the amount of coverage you would like to receive:

  1. Replacement cost coverage – depending on policy limits, this can help pay for costs to repair or replace your property damage or possessions that were damaged, without factoring in depreciation.
  2. Cash value coverage – this factors in depreciation to repair or replace property or possessions in some cases, depending on what your policy will cover.
  3. Guaranteed or extended replacement cost coverage – typically the highest protection policy available, because it can pay to replace your home the same way it was before the disaster.

To learn more about homeowner’s insurance in Long Beach, California, or any other areas of California, contact us directly. We would be more than happy to help you find the right plan.