Home Insurance: What Is It and Why Do I Need It?

Your home is designed to protect you from outside elements, but at the same time, it is an investment that you need to protect. If a disaster were to strike, you probably wouldn’t be able to afford to repair or replace it. Therefore, it is imperative to understand what home insurance is and why you need it. Neff & Associates Insurance Services Inc shares some information Pismo Beach, CA residents need to know about home insurance.

What Exactly Is Home Insurance?

Home insurance specifically protects your home’s physical structure as well as anything within the interior of the home if it suffers damage or is destroyed. You also have liability coverage, which protects you against legal action and medical expenses if someone were to suffer an injury while at your home.

A home insurance policy will cover the repair or replacement costs when your home suffers damage as a result of a covered peril like wind, fire, lightning, vandalism, or theft. Keep in mind that a standard home insurance policy doesn’t normally cover damage that results from an earthquake, backed-up sewer, or flood.

Why You Need to Purchase Home Insurance

While homeowners insurance isn’t required by law, it is generally required by mortgage lenders if you are paying on the house. Even after paying off your mortgage, though, it is always wise to maintain home insurance coverage so your home is properly protected in the event of a catastrophe. This type of peace of mind can go a long way.

If you would like to learn about your options for home insurance in Pismo Beach, CA, schedule a consultation with an insurance agent at Neff & Associates Insurance Services Inc.

Buying Auto Insurance? Consider These 3 Things

There are some important questions to ask yourself when you purchase auto insurance. These questions will help you in determining the type and amount of coverage needed. To assist you in this process, Neff & Associates Insurance Services Inc, serving Pismo Beach, CA, shares some of the most important factors to take into consideration when you are purchasing car insurance.

State Minimum by Law

Each state has its own minimum car insurance coverage that is required. The minimum in the state of California is 15/30/5, which means $15,000 for bodily injury coverage per person up to $30,000, in addition to $5,000 for property damage coverage.

Just because this is the state minimum, it doesn’t mean you shouldn’t purchase additional coverage. There is always the possibility of being involved in an accident that the state minimum car insurance coverage will not sufficiently cover, which would leave you paying out of your own pocket.

Value and Age of Automobile

If you have a relatively new vehicle that was expensive to purchase, you will likely want to invest in full coverage auto insurance, which includes both collision and comprehensive damage coverage. This ensures you’re reimbursed in the event of a loss due to theft or vandalism as well as damage to your vehicle if you are found at-fault. If you have an older vehicle that likely doesn’t have a value that would be returned in the event of an accident, it may be recommended to drop full coverage.

Amount of Risk You Want to Avoid

You will also want to take into consideration how much risk you want to avoid. If you would prefer to protect your vehicle at all costs over saving a little bit of money, you may want to keep your full coverage, lower your deductibles, and increase your liability coverage limits. However, if your overall goal is to pay out as little as possible each month, you may want to only choose liability coverage, lower your liability limits, and raise your deductibles. Just don’t forget to maintain the minimum amount of coverage required in the state of California.

Hopefully, this information has helped you with determining what you need in terms of auto insurance. If you still have questions and need help, Neff & Associates Insurance Services Inc, serving Pismo Beach, CA, can assist you in designing an auto insurance policy that fits your needs and budget. Contact us today!