Looking for the right insurance company in California for your home may not be easy as there are many companies out there to choose from. It may be better to know first the details in home insurance California before making a final decision. Read on to be more informed.

Insurance companies have four categories to determine the coverage for insurance. The first is called the ‘Dwelling’ which is basically the house itself. The second is ‘Other Structures’ which are the structures which are within the property but not physically connected to the house. The third is ‘Personal Property’ which are the contents of the house like appliances and furniture. The fourth is ‘Loss of Use’ which basically means that you are insured for the cost of living in case the house becomes ‘uninhabitable’ due to damage.

For homeowners insurance California, there are seven types of policies to choose from. They are the following:

• Homeowner’s-1: Offers limited coverage but includes loss from theft, lightning, wind, fire, and smoke. Few companies offer the first type.

• Homeowner’s-2: Offers all coverage of the first type and includes damage from fallen objects, damage resulting from plumbing or heating systems problems, and electrical damage of appliances.

• Homeowner’s-3: Also called as the ‘Special Form Policy’ since it insures against most types of damages and loss. This is the most common type of insurance and usually lists what is not covered on the policy.

• Tenant’s or Cooperative Owner’s: Basically for tenants of apartments and includes coverage for damage to the apartment and its contents.

• Homeowner’s-5: Covers everything in the third type and also insures personal possessions.

• Condominium Unit Owner’s: For condominium owners and offers same coverage as the fourth type.

• Homeowner’s-7: Like the first type but instead of providing a replacement cost for damage, it gives actual cash value coverage. Replacement cost means the cost of the damaged property without deduction for the property’s depreciation. Actual Cash Value means the cost of the damaged property minus the amount of depreciation.

Before they agree to a policy, most companies will require an appraisal of your house by a professional inspector. Also, it is best to keep an inventory of your personal belongings like furniture and appliances as they may also be included in the insurance policy. Keep a record of the receipts and important identification for them such as serial numbers for appliances. It is also advisable to take photos of these belongings. Keep your inventory updated always.

With all the different types and forms of coverage for home insurance California, you may be asking yourself what type of insurance is right for your circumstances? Although the insurance company may give suggestions, the final decision is up to you.

Know the types of damage and loss you want to be insured for, and know how much the premium will be. You want to be insured at the premium you can pay for without fail. Remember, if you fail on the payments, your home insurance services may be cancelled. Insurance companies can offer a free quote. So get as many as you can and compare premiums and coverage. Make a wise decision for home insurance California.