Perhaps the greatest investment a person ever makes is buying a house. This real estate, if the property is properly maintained and protected, can exponentially increase in value over the years and become a source of future wealth. It therefore behooves home buyers to conscientiously safeguard their property. Wherever your home is located in the U.S., a key step in protecting it from catastrophic damage is purchasing homeowner’s insurance.

In this unpredictable world, investing in a good homeowner’s insurance policy is essential. Such a policy will cover your house if it is damaged due to unforeseen circumstances like fire, natural disasters or theft. In California, this coverage is even more vital, since these unpredictable scenarios are considerably more likely occurrences than in other states. With all this said, those shopping for policies face one major difficulty: finding an affordable policy that also offers good coverage.

Average policy premiums vary greatly within California and are affected by numerous factors. One of the most important of these is the geographic location of your house. Average premiums tend to be highest in the City of Los Angeles and lowest in Orange County. These price differences are also based on a myriad of other factors, like the insurance provider, your policy’s coverage limits, the age of your house and the crime rates in your area. Insurance companies also consider natural disaster recurrence odds and local building costs, which are increasing yearly, when setting rates.
The wide variation in average premiums can clearly be seen when comparing Los Angeles to Orange County. As a result of a steadily increasing property crime rate, including vandalism and theft, the average premium in Los Angeles (currently $1,491.33) tends to be the highest in California and exceeds the national average. Since property crimes can be experienced multiple times in a given year and insurance companies are liable for paying for them, rates of these crimes contribute greatly to L.A.’s inflated premiums. In contrast, Orange County’s average premiums are just $1,239.10, making it the ninth least expensive county in the state.

Most homeowner’s insurance policies offer six types of coverage, classified with letters ‘A’ through ‘F’. Coverage A refers to protection covering your house and all connected structures. Coverage B protects all structures separate from your house. Coverage C protects personal property within your house, like money, furniture and artwork. Coverage D ensures that you have extra funds to cover your living expenses while displaced. Coverage E covers you when you are legally liable for injuries caused to others. Coverage F only provides for the treatment of those injured on your property.

Always shop around to find the best insurance policy for your needs. Utilize the internet to save time and energy in making your comparisons. Look for any way to save money on your premiums. In time, you will find what you need.