Home insurance Sacramento is a form of property insurance coverage. Homeowners insurance is designed to cover losses and damages that may happen to a home or residence. It may also include coverage for personal belongings and property inside the home such as furniture, electronics, valuables, appliances, clothing, and more. A standard homeowners insurance policy should also include liability coverage if someone is hurt or injured on your property.
Homeowners Insurance in Detail
A standard homeowners insurance policy will cover exterior damage, interior damage, loss or damage of personal property and injuries. If you are to file a claim then you will be required to pay a home insurance deductible.
Your homeowners insurance deductible plays a major role in determining what your rate may be. Please keep in mind, the higher your deductible is, the lower your rate will be. It works in reverse as well, the lower your deductible is, the higher your rate will be.
All home insurance policies will have a liability limit. This determines the amount of home insurance coverage the insured home has if the worst were to happen. Most standard limits are $100,000, but as the policyholder you can ask for higher limits if you need them. If a claim were to be made the limit liability would be the percentage of the coverage that goes to replacing the damaged home, belongings, or other structures.
Earthquakes and floods are typically excluded from home insurance policies. If you live in an area where these risks are common you may want to look into a earthquake insurance policy or a flood insurance policy.
Mortgage Companies and Homeowners insurance
Homeowners insurance is not a state requirement. Although, if you have a mortgage on your home the lender more than likely will require that you have a homeowners insurance policy in place before they will fund your loan. You can choose to purchase your home insurance on your own or the mortgage bank can help you find coverage. We recommend finding coverage yourself. This way you can make sure you’re getting the best deal.
You may also choose to have your homeowners insurance included in escrow so you can pay it within the monthly payment that goes to the mortgage company. This is commonly referred to as PITI which stands for “Principal Interest Taxes Insurance”. Meaning your loan principal and interest are paid along with property taxes and homeowners insurance.
The Difference Between Homeowners Insurance and a Home Warranty
A home warranty and homeowners insurance are different products, although they do sound similar. Your home warranty is designed to provide for repairs and replacements of home systems and appliances. Items include usually are ovens, water heaters, washers / dryers, and pools. Typically contracts like these will expire within around 12 months and they are not required by a mortgage lender. Home warranties will cover problems that come up due to poor maintenance and wear and tear. Homeowners insurance will not cover you for poor maintenance or wear and tear.
Private Mortgage Insurance is Different Than Homeowners Insurance
Private mortgage insurance or PMI, is very different than homeowners insurance. Private mortgage insurance is something that is a requirement from the mortgage lender if your loan to value is above 80% when you fund your home loan. PMI is is in place to protect the lender if you default on your mortgage, it does not cover you. Homeowners insurance is designed to protect you and your financial situation.
Please keep in mind, if you are required to carry private mortgage insurance, more than likely the lender will also want you to carry homeowners insurance.
Homeowners insurance quote
The best way to get a homeowners insurance quote is to speak with an independent homeowners insurance broker such as Eugene C Yates Insurance Agency. Our agents have access to the top home insurance companies in the industry and firsthand knowledge of the best home insurance discounts available. This makes it easy for them to get you the best rate on the best coverage available.
If you would like a custom homeowners insurance quote, please contact us today at 916 313 6100
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