What can I do about the earthquake and flood exclusions?

Many insurance companies in areas prone to earthquakes offer earthquake coverage. In 1996, the California Legislature passed and the governor signed legislation creating the California Earthquake Authority -- a state-managed authority that offers a very restricted earthquake policy. While this coverage is often expensive, it is important for a homeowner in an earthquake prone area to explore the availability and cost of this important coverage.

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What are the types of standard packaged insurance policies?

Below is a listing of the more common standard insurance policies, often called "forms". As a practical matter, only "all-risk" policies (HO-3 for homeowners, HO-4 for renters, and HO-6 for condominium owners) should be considered unless there are extenuating circumstances.

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What is a peril and why is it important?

A "peril" is the exposure to the risk of being injured, destroyed, or lost. Most insurance companies refer to "perils" as the particular risks that can cause loss or damage. In some insurance policies, these are referred to as "named perils" - the types of occurrences that can cause loss or damage for which the insurance company will provide coverage.

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Why shop? Aren't all standard policies alike?

There are a number of standard packaged insurance policies available, but not all insurance policies are the same. The bottom line -- not all insurance policies are created equal. Even a standard, broad form insurance policy issued by one insurance company can be very different from the same broad form insurance policy offered by a competitor. The differences often come as a result of how each insurance company "packages" its policy - there are a variety of ways in which an insurance company can put together an insurance policy, their underwriting criteria and standards, and customer service.

What can I do about the earthquake and flood exclusions?

Many insurance companies in areas prone to earthquakes offer earthquake coverage. In 1996, the California Legislature passed and the governor signed legislation creating the California Earthquake Authority -- a state-managed authority that offers a very restricted earthquake policy. While this coverage is often expensive, it is important for a homeowner in an earthquake prone area to explore the availability and cost of this important coverage.

Continue reading "What can I do about the earthquake and flood exclusions?" »

What are the types of standard packaged insurance policies?

Below is a listing of the more common standard insurance policies, often called "forms". As a practical matter, only "all-risk" policies (HO-3 for homeowners, HO-4 for renters, and HO-6 for condominium owners) should be considered unless there are extenuating circumstances.

Continue reading "What are the types of standard packaged insurance policies?" »