Understanding the Different Types of Property Insurance

The best way to protect your greatest investments is to have them insured. In San Diego, homeowners or property insurance protects your home and most valuable assets should disaster strike. Most San Diego homeowner’s insurance companies define property insurance as encompassing either a person’s home or business. The following is a run-down of the common types of property insurance.

The most common type of property insurance is homeowner’s insurance. Homeowner’s insurance protects you from paying damage costs to your home, property or injuries incurred by others while on your property. Many homeowners are highly encouraged to purchase homeowner’s insurance. Standard homeowner’s insurance will cover damage caused by natural disasters such as fire, hail, wind, lightning and rain as well as damage caused by man-made disasters including theft, vandalism and explosions.

There are many kinds of homeowner’s insurance coverage. Homeowners insurance packages are rated on a scale of 1-8, with HO-1 being the most basic and least expensive insurance coverage and HO-8 being the most extensive, comprehensive coverage. HO-3 is the most common coverage and protects every aspect of your home from the foundation to the contents inside.  Most homeowner’s insurance policies cover fire, but if your coverage doesn’t, you may need to purchase additional fire insurance. There is similar property insurance for businesses, commonly called commercial insurance in San Diego, which protects one’s business building.

Another type of property insurance is earthquake insurance. This self-explanatory property insurance is optional, though it is highly recommended for those living in earthquake prone areas such as California. A gauge to help you decide if you should purchase earthquake insurance is to do some research and see if there has been any significant earthquake activity in your neighborhood over the past 5 years.

A third type of property insurance is flood insurance. This kind of property insurance is a necessity for those living in flood-prone areas, whether in a valley or in an area near the ocean.

Protecting one’s home is a must for every San Diego homeowner. For those who want to protect their home and other belongings, reach out to American Tri-Star Insurance in San Diego. Along with homeowner’s insurance, we also offer affordable motorcycle, auto and health insurance in San Diego. Call us at 619-272-2100 for more information or for a free, instant quote.