The destructive aftermath of an earthquake on a building

Getting Home Insurance in Los Angeles

Home insurance in Los Angeles helps protect local property owners from financial loss if your home or personal belongings inside the home become damaged from perils like fire, natural disasters, and theft. In addition, most policies include reimbursement for things like food, lodging, and storage if you are ever displaced from your home while it is being repaired or replaced. In addition, insurance typically includes liability coverage, which protects you from claims and lawsuits if someone is injured in your home or on your property because of negligence.

The California Department of Insurance provides several helpful tools for homeowners in Los Angeles who are seeking a policy. If you are looking to get an idea of what your premium will cost, their 2011 Homeowners Premium Survey website provides information about what homeowners living throughout the city paid for their premiums. The site also provides a convenient tool to provide estimates based on the age of the home and the type and amount of coverage selected. The Department of Insurance also provides information about the California FAIR Plan, which provides policies for Los Angeles homeowners who are unable to be insured through a traditional policy.

Factors of Home Insurance Rates in Los Angeles

Insurance companies look at a variety of different factors when it comes to determining the cost of your homeowners policy in Los Angeles. One of the most important factors is how much it would cost to rebuild the home if it were ever completely destroyed, according the National Association of Insurance Commissioners’ (NAIC) Consumer’s Guide to Home Insurance. Older homes also cost more to insure because they typically require more upkeep, have a higher number of claims, and cost more to repair because of their aging infrastructure. Larger homes will also typically cost more to insure because there is more physical structure that, in most cases, houses more valuables to insure as well. Other factors that affect price include your home’s claims history, the claims history of nearby homes, and its proximity to fire hydrants and stations.

Insurers also take the crime rate of your particular Los Angeles neighborhood into account when determining your rates. If your house is in an area with high rates of burglary, theft, or vandalism, then you could be facing higher premiums. You can get an idea of what crime rates are in Los Angeles from the chart below:

  Robbery Burglary Larceny-theft
2010 10,924 17,410 55,248
2009 12,217 18,435 57,414
2008 13,422 19,726 19,523

Homeowners living in Los Angles must also protect themselves from the potentially catastrophic damages that can result from earthquakes. According to the Department of Insurance, all insurance companies must offer additional earthquake insurance policies to Los Angeles residents. These policies must provide coverage for your home, your personal property, and additional living expenses if you are displaced due to damage. Most policies will also cover your home when it comes to fires that result from earthquakes. However, most earthquake policies will exclude damages to any outdoor sheds, swimming pools, or masonry fences on the property. Insurance companies are also required to provide earthquake coverage if your property does not meet current building code, but can charge a higher premium for such homes.

Home Insurance in California

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