In Sacramento California the average cost of home insurance is roughly $924 annually or $77 per month. Please keep in mind these are just averages. Home insurance is usually customized to fit an individual homeowners needs.
In this article we go over a few of the homeowners insurance buying basics so that hopefully you can better understand your home insurance policy and why your rate is unique to your situation.
Homeowners insurance estimate
Before you begin your home insurance estimate you will want to ask yourself a few questions. These will include questions about the home, your personal property and what regional risks are in your area. Below are a few questions you may want to ask yourself:
- How much would it cost to rebuild your home today if the worst were to happen?
- What risks are in your area, such as wildfires, flooding or earthquakes?
- What is the value of your personal property?
These questions should help you to calculate your home insurance coverage limits.
Your home insurance policy has main 3 coverages
Dwelling:
The dwelling coverage in your home insurance policy is designed to cover the structure of the home. Besides the structure it can cover the roof, plumbing, and built-in appliances.
Personal property:
Personal property insurance coverage is the portion of your home insurance policy that will protect items such as clothing, furniture, valuables, jewelry, electronics and more.
Liability:
Liability insurance coverage will help to protect you if someone is hurt or injured on your property. It can help to cover legal fees if a lawsuit is filed against you.
What is the replacement cost of your home?
The amount it would take to rebuild your home from scratch is the replacement cost. Typically you would want to have dwelling coverage that matches the replacement cost of the home.
Usually the replacement cost of your home will be lower than the resale value. This is because it does not include the land the property is on.
When home insurance companies calculate the replacement cost of your home they use a combination of data that is available to the public. They will also use information you provide as well. The home insurance provider may also inspect the home to make sure the coverage you bought matches the amount necessary for coverage.
Home insurance Sacramento coverage limits
You will need to choose the type of coverage you want to buy. Typically there are three types of policies to choose from. They will determine the amount you will receive if you need to use your home insurance policy.
Actual cash value (ACV):
ACV is the total amount needed to rebuild your home minus the cost of depreciation.
Replacement cost value (RCV):
Replacement cost value is what it would cost to completely rebuild your home based off the pricing at the time you started the home insurance policy. These policies are usually more expensive than an ACV policy. Depreciation is not applicable to this policy.
Guaranteed or Extended replacement cost (GRC or ERC):
GRC or ERC coverage means your homeowners insurance company will pay for a percentage of the home replacement cost.
What risks are usually excluded from a standard home insurance policy
If you’re in California you may already know all the risks we may encounter on a daily basis. The perils that are covered under most home insurance policies may be smoke and fire, vandalism, wind, severe weather, theft and some water damage. There are some risks that are common to Californians that are not covered or may make it difficult for you to find good home insurance coverage.
Disasters such as earthquakes, flooding and wildfires are usually either difficult to find coverage for or require a separate policy. Fire and smoke are typically covered under a standard policy but if you live in an area prone to wildfires you may have trouble finding any coverage at all for your home.
If you live in a high brush or remote area and are having trouble finding coverage or renewing your current policy, please reach out to us. We can potentially help you to get home insurance through the California FAIR Plan and Differences in Conditions insurance.
If you live in an area where earthquakes or flooding can be an issue, you may want to look into earthquake insurance or flood insurance.
Average home insurance Sacramento Quote
If you would like a free custom home insurance quote, please feel free to contact us today! We would love to speak to you about homeowners insurance! A professional home insurance agent can be reached at 916 313 6100