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Protecting Your Family and Property in San Francisco
Once you have decided to relocate to San Francisco, it is essential not to forget the importance of insurance, which is often an overlooked task for many newcomers. It is understandable that making the journey from one city to another means attending to other fundamental issues first that enable you to establish your new residence, but it is equally important to protect your belongings, financial interests and family from unforeseen events once you do get settled. It is especially important to address your insurance needs if you are moving to a new state. Often the insurance requirements and options vary greatly from place to place.
The information in this chapter largely is provided by the California Department of Insurance (CDI). The CDI’s Consumer Information Insurance Guides and other tools can offer additional valuable information on all types of insurance, including homeowners, auto and health. Visit www.insurance.ca.gov to access these complete resources.
HOMEOWNERS INSURANCE
For most people, their home is their largest financial investment; therefore, shopping for homeowners insurance is essential in protecting this valuable asset. Start by planning to conduct a thorough search of the insurance marketplace to find residential insurance from a provider that meets your specific needs. Whether you are interested in purchasing homeowners (including fire only), renters, condominium unit owners or mobile home insurance, it is important to shop and compare insurance products just like you would when shopping for any other important major purchase. No matter which policy you choose, make sure you read the exclusions in the contract so you know what is and is not covered.
What Is Covered by Homeowners Insurance?
A homeowners policy in California contains two sections. Section I (A, B, C and D) provides property coverages while Section II (E and F) provides liability coverages. A brief description of the individual coverages follows.
Earthquake Insurance
In California, when an insurer writes your homeowners coverage, he or she legally is obligated to offer you earthquake coverage for an additional premium. Earthquakes although not frequent are very much a part of the possible natural disasters that can befall the San Francisco area. The earthquake coverage may be written directly by the homeowners insurer, by a separate insurer or through the California Earthquake Authority (CEA).
Additional Residential Coverage
Flood, mold, earth movement and “wear and tear” are some of the perils that usually excluded from regular homeowners insurance coverage. Homeowners can elect to buy specialized coverage that provides additional protection for the dwelling and contents beyond the standard coverage limitations in most homeowners policies. Ask your insurance agent or broker about available endorsements to extend the coverage. Extra endorsements to your coverage, such as building code upgrade, can add a lot to your protection in a loss.
Once you have decided to relocate to San Francisco, it is essential not to forget the importance of insurance, which is often an overlooked task for many newcomers. It is understandable that making the journey from one city to another means attending to other fundamental issues first that enable you to establish your new residence, but it is equally important to protect your belongings, financial interests and family from unforeseen events once you do get settled. It is especially important to address your insurance needs if you are moving to a new state. Often the insurance requirements and options vary greatly from place to place.
The information in this chapter largely is provided by the California Department of Insurance (CDI). The CDI’s Consumer Information Insurance Guides and other tools can offer additional valuable information on all types of insurance, including homeowners, auto and health. Visit www.insurance.ca.gov to access these complete resources.
HOMEOWNERS INSURANCE
For most people, their home is their largest financial investment; therefore, shopping for homeowners insurance is essential in protecting this valuable asset. Start by planning to conduct a thorough search of the insurance marketplace to find residential insurance from a provider that meets your specific needs. Whether you are interested in purchasing homeowners (including fire only), renters, condominium unit owners or mobile home insurance, it is important to shop and compare insurance products just like you would when shopping for any other important major purchase. No matter which policy you choose, make sure you read the exclusions in the contract so you know what is and is not covered.
What Is Covered by Homeowners Insurance?
A homeowners policy in California contains two sections. Section I (A, B, C and D) provides property coverages while Section II (E and F) provides liability coverages. A brief description of the individual coverages follows.
- Coverage A–Dwelling provides major property coverage that protects your house and attached structures if it is damaged by a covered peril.
- Coverage B–Other Structures provides protections to other structures on your residence premises that are not attached to the main dwelling. Items covered include buildings, such as detached garages and tool sheds. This coverage normally is limited to 10 percent of the Coverage A limit; however, you can purchase more coverage for an additional premium.
- Coverage C–Personal Property provides protection for the contents of your home and other personal belongings owned by you and other family members who live with you. This coverage normally is 50 percent of Coverage A or is subject to an established amount agreed upon by you and the insurance company. This coverage is limited on certain types of property that are particularly susceptible to loss, such as jewelry, furs, fine art, silverware, antiques, collectibles, firearms and money. Additional amounts of insurance may be purchased, and you may want to consider scheduling these items separately. Ask your agent for specifics.
- Coverage D–Loss of Use is coverage will help with additional living expenses if your home is damaged by a peril insured against to the extent that you cannot live in your home. These expenses include, but are not limited to, housing, meals and warehouse storage. Coverage D is normally limited to 20 percent of Coverage A.
- Coverage E–Personal Liability will provide coverage in the event you or a resident of your household are legally responsible for injury to others. This coverage normally provides a defense and will pay damages as the insurance company deems appropriate. There are some exceptions; the liability coverage will not protect you in all situations, such as an intentional act of destruction or violence. All exclusions and specific language can be found in your policy.
- Coverage F–Medical Payments to Others pays for reasonable medical expenses for persons accidentally injured on your property. For example, if a neighbor’s child is injured while playing in your home, the medical payments portion of your homeowners policy may pay for necessary medical expenses. Medical payments coverage does not apply to your own injuries or injuries of those who reside in your household. Business activities are also excluded, and it is not a substitute for health insurance. All exclusions and specific language can be found in your policy.
Earthquake Insurance
In California, when an insurer writes your homeowners coverage, he or she legally is obligated to offer you earthquake coverage for an additional premium. Earthquakes although not frequent are very much a part of the possible natural disasters that can befall the San Francisco area. The earthquake coverage may be written directly by the homeowners insurer, by a separate insurer or through the California Earthquake Authority (CEA).
Additional Residential Coverage
Flood, mold, earth movement and “wear and tear” are some of the perils that usually excluded from regular homeowners insurance coverage. Homeowners can elect to buy specialized coverage that provides additional protection for the dwelling and contents beyond the standard coverage limitations in most homeowners policies. Ask your insurance agent or broker about available endorsements to extend the coverage. Extra endorsements to your coverage, such as building code upgrade, can add a lot to your protection in a loss.
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