Why Buy Homeowner or Renters Insurance?

No matter what type of place you live in, or whether you rent or own, your home is a central part of your life. If you own a house, condominium, it is probably your most valuable asset. If you rent, you probably still have a lot to lose in furnishings, clothes, electronic equipment and all the valuable items you've accumulated over the years.

That's why there's home insurance to help you protect your assets by providing the money you would need to rebuild or replace your valuable possessions should disaster strike.

HO3-This is the most popular and widely purchased of the basic homeowners policies, accounting for nearly 80 percent of all homeowners policies sold today. Under an HO3, your real property (e.g., home, garage and other structures) is covered for "open perils" or "all risks" except those specifically excluded by the policy. Your personal property is covered for 17 named perils, including damage caused by vandalism; weight of ice, snow or sleet; and accidental discharge or overflow of water or steam from the heating or plumbing system or appliances within your home. 

HO4-This is also known as a "renters" or "tenants" policy. It protects the possessions of tenants living in a house, apartment, room, etc. against loss from 17 named perils. It also provides liability and medical payments coverage but does not protect the actual building or dwelling, which should be covered by the landlord's policy. HO4 coverage can also be purchased to cover personal property only, excluding liability or medical payments coverage.

HO6-This coverage is provided for condominium and co-op owners. It provides personal property, liability and medical coverage. Insurance for the common areas of a condominium complex is called the "master policy" and is generally purchased by the association. However, as an individual condominium or co-op owner, you need to be aware of the coverage purchased under the master policy to make sure you have adequate coverage to protect your interests.

What is California FAIR Plan?

The California Fair Access to Insurance Requirements (FAIR) Plan (California Insurance Code Section 10090 et seq.) was created by the Legislature in 1968  after the brush fires and riots of the 1960’s made it difficult for some people to purchase fire insurance due to hazards beyond their control. The FAIR Plan is designed to make property insurance more readily available to people who have difficulty obtaining it from private insurers because their property is considered "high risk." 

For an overview of what's covered by your homeowners insurance policy, look at the Declarations Page attached to the front of your policy.