Helpful Tips for Purchasing Home Insurance in Rancho Cucamonga, CA

by | Jun 17, 2019 | Insurance

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Owning a home is a dream many Californians aspire to, and part of being a responsible homeowner is purchasing Home Insurance in Rancho Cucamonga CA. Buying a home can be overwhelming, and first-time home buyers may opt to obtain minimum insurance coverage. However, experts recommend following these suggestions to make sure your investment is adequately protected.

Understand the Requirements

Mortgage lenders will require homeowners to carry enough insurance to protect the mortgage holder. Depending on where the house is, a homeowner may also be required to purchase flood insurance. Homeowners may opt to purchase earthquake insurance as well, since homeowners insurance generally does not cover damage due to an earthquake.

Shop Around

Compare coverages from at least three companies. When evaluating companies, compare prices, coverage, and customer satisfaction. Shop for value rather than the lowest overall price. Since customers usually deal with their insurance companies only when they have a problem, be sure the company has excellent customer service reviews.

Obtain Adequate Coverage

Be sure to purchase enough insurance to replace the home in case of total destruction, but do not overpay by purchasing more coverage than is necessary. Purchase enough insurance to rebuild the house, replace all of the items within the home, and defray any costs for temporary housing in the event the home is unlivable. Additionally, consider coverage to protect your financial assets in the event of personal liability, such as an injury.

Escrow Insurance Payments

Most homeowners will include their home insurance premium payments along with their monthly mortgage. The mortgage company will collect those premiums monthly and submit the payment to the insurance company when it is due. Mortgage companies like escrowed payments since they know the insurance payments are being made and their investments are protected.

Understand Policy Terminology

Insurance policies come with their own set of terms that can be confusing to first-timers. Insurance policies differ based on the type of reimbursement they offer. A replacement value policy will reimburse the homeowner for the cost to replace the home and all of its contents. An actual cash value would provide the homeowner with the cash value of the home. These values are subject to a deductible, which is the amount the homeowner would pay out of pocket. Contact Barranca Insurance Services Inc. for more information or to discuss options for purchasing Home Insurance in Rancho Cucamonga CA. You can also connect them on Facebook.

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