Question 1

What does the 80% rule mean for homeowners insurance in Torrance?

Accepted Answer

The 80% rule dictates that to secure full reimbursement following a covered loss, homeowners in Torrance must have insurance that equals at least 80% of their home's entire replacement cost. If they don't meet this criterion, they risk not obtaining complete coverage for damages. Homeowners must align their policy with this guideline to avoid potential financial shortfalls.

Question 2

For homeowners in Torrance, how does insurance coverage work for accessory dwelling units (ADUs) or "granny flats"?

Accepted Answer

In Torrance, insuring an ADU hinges on its attachment to the main dwelling and if it's rented out. Coverage nuances are influenced by the homeowner's location and their insurance provider. It's pivotal to understand that a property inspection might be mandatory to ascertain the ADU's eligibility for insurance and to guarantee adequate coverage. Consulting their insurer ensures homeowners grasp all specifics.

Question 3

If a homeowner's property in Torrance experiences a mudslide due to a wildfire, will their HO policy cover it?

Accepted Answer

In Torrance, while mudslides might not be directly covered, the principle of "efficient proximate cause" might offer some hope. The HO policy could provide coverage if evidence indicates that the wildfire (a covered peril) directly led to the mudslide or similar events. Homeowners should first submit a claim. If denied, the insurer must justify the refusal, citing policy specifics.

Question 4

In Torrance, how do "actual cash value" and "replacement cost" differ in homeowners' policies?

Accepted Answer

In Torrance, when a policy uses "actual cash value," the homeowner gets the depreciated value of the damaged item, reflecting age and use. Conversely, with "replacement cost" coverage, one is compensated based on the current price to replace the item with another of the same type and quality. While the former considers depreciation, the latter seeks to cover the present-day value of a comparable item. Homeowners need to understand both options to make informed decisions.

Question 5

Are damages from earthquakes covered by homeowners' insurance in Torrance?

Accepted Answer

No, damages from earthquakes aren't covered by standard homeowners' insurance. To safeguard against earthquake-related damages, Torrance residents must obtain a separate policy. If they forgo this coverage, they must shoulder the entire burden, from mending their homes to replacing personal items and securing temporary housing after a major tremor. Assessing the potential financial implications versus the benefits of having coverage is crucial.

Question 6

What determines the price of homeowners insurance premium?

Accepted Answer

The premium, or monthly cost, of your homeowners' insurance policy depends on several factors, including the value of your home and amount of coverage you choose. Your credit history and whether the property is in a higher risk area also play a role.

Question 7

What is the difference between home warranty and homeowners insurance?

Accepted Answer

Homeowners' insurance protects your home and property from damage from events that include storms, theft, and fires. A home warranty covers repair costs for parts of your home that eventually breaks down. For example, if a fallen tree damages your roof, it's typically covered by insurance, not the warranty.

Question 8

Does Geico offer homeowners insurance?

Accepted Answer

Because auto insurance is Geico's focus and where they invest the most in advertising, many people know the company only as a car insurance provider. On the contrary, Geico does offer a range homeowners' insurance policies that cover dwellings, personal property, and personal liability, among other provisions.

Question 9

How long does homeowners warranty insurance last?

Accepted Answer

Home warranties vary based on the provider of the coverage, but most home warranties last for one year. Once they run out, homeowners have the option of renewing the warranty or letting it lapse. If a covered item breaks down after the warranty period is over, repair costs won't be reimbursed.

Question 10

Does homeowners insurance cover water heaters?

Accepted Answer

Homeowners' insurance doesn't cover water heaters when they break down from normal wear and tear. An insurance policy may cover water damage to your home and property if it malfunctions, and if the water heater is damaged by a fire or an accident, home insurance may provide the costs to replace it.

Question 11

Are RVs covered under homeowners insurance?

Accepted Answer

Usually, an RV is covered under your homeowners' insurance, but that coverage will probably be subject to several exceptions and contingencies. For example, if you want to drive your RV, you'll either need car insurance or specialized RV insurance since the risks you'll face on the road do not fall under a homeowner's policy.

Question 12

Do new buyers need owner\'s title insurance on a new home?

Accepted Answer

There are unique risks that a buyer of a new home may face. For example, property claims from previous owners or liens from suppliers whom the homebuilders never paid during construction. Title insurance protects the home from these perils, and your mortgage lender may require it.

Question 13

Do owner builders need home warranty insurance?

Accepted Answer

In the United States, owner builders are not required to have home warranty insurance. If you're the one who built your home, you're expected to incur the costs of repairs yourself if a structure or appliance breaks down.

Question 14

Are dogs deaths covered in homeowners insurance?

Accepted Answer

Usually, the loss of a dog or other pet is not covered by your home insurance. However, many insurance providers offer riders — packages of added coverage — for pets called pet insurance. This ensures that medical costs and property damage caused by your pets are fully covered.

Question 15

Are earthquakes covered in standard homeowners insurance policies?

Accepted Answer

Standard homeowners' insurance policies do not cover damage directly caused by earthquakes. Insurance will sometimes cover indirect damage, however. For example, if an earthquake causes a fire in your home, damage from the fire will be covered under a standard home insurance policy.

Question 16

Are homeowners insurance and car insurance deductible?

Accepted Answer

Homeowners' insurance and car insurance premiums are not deductible as personal expenses on your taxes. However, some percentage of your premiums may be deductible as business expenses if you own a business and use your car and home for business purposes. This may vary between states.

Question 17

Are homeowners insurance payouts taxable income?

Accepted Answer

If you file a claim after a burglary at your home, for example, the insurance company will assess the value of the property lost or damaged and reimburse that amount. This payout is not taxable because it's not income — it's a replacement of lost value.

Question 18

How frequent should one change auto or homeowners insurance to another provider?

Accepted Answer

If you find home and auto insurance policies that you're happy with, you may never want to switch. However, various providers offer different combinations of coverage and price, so you may want to assess all your options every few years.

Question 19

What should a homeowners insurance include/cover?

Accepted Answer

A homeowners' insurance policy should cover the dwelling, personal property inside and some outside, other structures on the property, and liability. For example, it should cover medical bills if a guest sustains an injury. Not all of these coverages are included in every policy.

Question 20

How much homeowners insurance should someone carry?

Accepted Answer

How much insurance you need depends on the size of your home, its age, and other unique factors. Standard insurance policies cover around 70% of the total value of your home and additional covered property. Most policies that offer premises liability include $100,000 in liability coverage.

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Frequently Asked Questions

Introduction

What does the 80% rule mean for homeowners insurance in Torrance?

For homeowners in Torrance, how does insurance coverage work for accessory dwelling units (ADUs) or "granny flats"?

If a homeowner's property in Torrance experiences a mudslide due to a wildfire, will their HO policy cover it?

In Torrance, how do "actual cash value" and "replacement cost" differ in homeowners' policies?

Are damages from earthquakes covered by homeowners' insurance in Torrance?

What determines the price of homeowners insurance premium?