Unlike driving a vehicle where you are required to carry auto insurance, there are scenarios where you can own a home without having homeowners insurance but this is typically reserved for individuals that are able to purchase the entirety of their home with cash. Since this is usually not the case for the average consumer, it is highly likely that your mortgage lender will require that you carry insurance to protect their investment if your home is damaged or declared a total loss. Additionally, if you live in an area deemed by the Federal Emergency Management Agency as being high risk for flooding, you will likely be required to purchase a supplemental flood insurance policy to your homeowner coverage.
Home Insurance Options
When it comes to insuring your home in California, homeowners have a number of options. First, you can purchase a policy that covers the actual cash value of your home. What this means is that property records or an appraisal is used to determine what your house is worth and if it is destroyed because of a fire, natural disaster or other covered incident than your insurance policy will pay to replace it minus the estimated depreciation. Second, you have the option to purchase a replacement cost policy that pays to rebuild or repair your home without taking into account any depreciation. Lastly, is a policy that covers the guaranteed or extended replacement cost. This type of policy is considered the highest level of peace of mind and offers coverage to pay whatever it costs to rebuild your home as it was before the incident regardless of whether or not it exceeds your policy limits.
Shopping for homeowner insurance does not have to be a challenge when you go with the professionals at Wine Valley Insurance Services in Napa, CA. Our friendly team of knowledgeable insurance pros will answer all your questions while helping you choose the best policy for your needs.