What Your Insurance Company Will NOT Cover

Updated: Apr 15

homeowners insurance policy san ramon california

We know that the homeowners insurance policy is not exactly the most exciting thing to read. It is filled with insurance lingo that the average joe may not be familiar with. However, we also know that it's one of the most important things to read when purchasing your home.

There are a lot of great insurance companies in California. Truth be told, California is a great place to get insurance because it is actually the second cheapest state in the country to get one, with an average cost of $1,166. But no two insurances are exactly alike. You will find that there are many differences in the offers of many companies.

To make your life easier, we've gathered here some useful pieces of information so you are well-informed of what is in your insurance policy before you sign it.

wildfire insurance policy san ramon california

Wildfire Damage

Covered, and not. The standard insurance policy covers wildfire as ensured by the Insurance Information Institute or III.

However, due to the frequency of the wildfires in the state, most insurance companies now refuse to renew their policies and would tend to charge extra for wildfire damage coverage. Also, do take note that the coverage still depends on what part of California you are located in.

How much can inspection help you? Read it here: How Much Money Can You Save Through Inspection?

Need downpayment assistance? These can help!

Earthquake Damage

earthquake insurance policy san ramon california

If you applied for a mortgage, you know that you are required to get a homeowners insurance. But getting an earthquake insurance is another additional expense that is totally up to you.

To help you decide, in October 2020 alone there were 3 quakes of magnitude 4.0 or above, 70 quakes between 3.0 and 4.0, and 636 quakes between 2.0 and 3.0 in California. Ask your insurance company the history of earthquakes in your location and make a choice if you should get an earthquake insurance or not.

flood insurance policy san ramon california

Flood Damage

Despite California being a flood-prone area, only a few have purchased a flood policy, a total of 12% in all of the country. According to III, there are 214,032 flood insurance policies available in California alone as of 2019. That would be more than enough choices for every homeowner to browse through and choose from to make sure that your home and everything inside it is insured whatever may happen in the future.

Which of these came as a surprise? As a current or future homeowner, which would you first add to your insurance? Tell us in the comments!








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