HOT TOPICS - A Closer Look at Homeowner's Insurance - The Top Ten List:

Do you know what you should be looking for in a homeowner's insurance policy? All policies are not created equal.

The homeowner's insurance policy that you purchase should include the following ten coverages:

The reason why this is so important is because, in California, NO INSURER still offers "guaranteed replacement cost coverage". Most insurers (including State Farm, Farmers and Allstate) severely "cap" how much extra coverage will be provided in the event of a loss. If your home happens to be underinsured, whether it is the fault of the agent who wrote your policy or not, you might not be able to rebuild your home in the event of a total loss. It is important now, more than ever, to pay very close attention to the amount of dwelling coverage shown on your policy.
At Farallone Pacific, we are committed to replacing your home fully. Our insurers will pay to have your home rebuilt, even if the cost is greater than the amount of your coverage shown on your policy.
This enables you to receive cash, up to the policy limit, if you decide not to rebuild your home in the event of a total covered loss. Often times you can exercise this option if you decide to rebuild your home in a different location or with different materials. Unlike most other insurance policies sold in the industry, many of the policies offered by Farallone Pacific insurers also allow "cash out" options for losses to personal property as well.
If something serious happens to your home, you may find that you have to comply with today's stricter building code requirements. The insurers represented by Farallone Pacific will pay the reasonable costs to conform to these codes, up to the policy limit.
It is unfortunate, but the majority of homeowners insurance policies sold in the California marketplace provide limited or no coverage when water or sewage backs up and into your home. The complete removal of this water and debris can be expensive, hazardous and time consuming. Most of the policies sold by Farallone Pacific include this important coverage.
The reason these coverages are so important is because the society that we live in today is very different than it was even ten years ago. It is not uncommon for someone to be wrongfully accused of libel, slander or defamation of character. There are also a variety of ways your personal information can be stolen and used by thieves to run up charges in your name with the potential for ruining your good credit at the same time. Sadly, many of the policies sold in the marketplace today do not include coverage for one or both of these important coverages. Nearly all policies offered by Farallone Pacific include these important coverages.
If a loss occurs to your home that is severe enough to force you to live elsewhere, while your home is being repaired or rebuilt, it is important to have adequate coverage for the shelter you need. This coverage can be temporary (hotel, food, cash, clothing, etc). or long-term (renting of an apartment, home, etc.). The insurance policies sold by the competition limit the amount coverage available to you substantially and you could be forced to live where you don't want to, have your items in storage, your pets at a friends or relatives and so on, simply because an insurance company won't pay for you to live where and how you want (and need to.) At Farallone Pacific, the policies offered by our insurers often times provide unlimited additional living expense coverage (also known as loss of use coverage) and this is sometimes the number one reason our clients purchase a policy from one of our insurers. It is comforting to know that if you are displaced for two weeks or two years, that you will be living hassle free in a home similar to your own AND that your insurance company, not you, will be paying the bill for rent each month.
There are many individuals who work from a home office or store personal property used for business purposes at their home either temporarily or long term. Sadly, the insurance policies sold in the marketplace limit the amount of coverage for this business personal property substantially. The policies sold by Farallone Pacific insurers provide limits often times far greater than the competition.
If your personal computer is damaged due to something other than the coverages "named" in the competition's homeowner's policy, you will generally have no coverage for the damage or total loss to your computer. Many of the policies offered by Farallone Pacific insurers provide "all risk" coverage for personal computers. Therefore, losses for breakage or those that occur as a result of a power outage can often times be fully covered.
Should you be sued for bodily injury or property damage as a result of a liability situation at your residence or elsewhere, it is important to have the proper amount of liability coverage. Proudly, the minimum coverage sold by Farallone Pacific for personal liability is $500,000. It is not uncommon for another agent or company to offer just $100,000 or $300,000, even though the premium difference to increase will be under $20.00 annually. Many agents fail to advise their client of the need for proper liability and sadly it might be you that discovers this, after a liability lawsuit is filed against you, as a result of your actions or those of an immediate family member or pet. If you are insured with Farallone Pacific, we will recommend a minimum of $500,000 liability and explain the benefits of adding a personal umbrella.
The reason that many clients don't purchase additional coverage on their homeowner's policy, for the jewelry they own, is because of the high premium. It is a well-known fact that purchasing a jewelry "schedule or rider" can be costly. It is important to know that, unlike the other homeowners insurance policies sold in the marketplace, the policies offered by Farallone Pacific automatically include either $5,000 or $10,000 for jewelry coverage instead of the typical $1,500 or $2,500 included in our competitor's policies. This extra jewelry coverage will allow your jewelry to be covered without you having to pay additional premium each year.