Imagine a worse case scenario situation where there’s a massive earthquake and your house crumbles, taking with it everything you have worked for and treasured. You call your insurance company so you can start to rebuild your life and instead of being guided through a claims process, you are instead informed that your California homeowners policy does not cover damage caused by earthquakes and you are left with nothing but a pile of rubble and an unpaid mortgage!

This is the situation millions of homeowners could find themselves in should the worst happen, simply because many of us don’t understand what our homeowners policy offer. Many California homeowners will presume, due to the high risk, that earthquake coverage is automatically provided, but in most cases this is sadly not the case.

Homeowners insurance can be confusing and complicated. Most people know they need it, but don’t know exactly what is and is not covered when they sign up. A recent poll suggests that four out of every ten people surveyed don’t know what their homeowners insurance policy covers. For example, more than 2 in 5 wrongly believe mold damage is covered by a standard homeowners policy. In other cases Homeowners policy holders underestimate their insurance, with 73% unaware that items stolen or damaged in a vehicle are covered. Perhaps to be taken more seriously by California homeowners, the study shows that 51% of respondents are unaware that Earthquake protection is not covered by standard California insurance policies. On the bright side, 90% of Californians do know that fire damage is covered by their homeowners policy, while 72% know lawsuits from injured visitors are also covered. However, to get the best from our policies, it is important that we understand what we are each entitled to.

There’s a lot of confusion, misunderstanding and misconceptions surrounding home insurance which could lead to serious and costly consequences. It is human nature to not want to think about the unthinkable happening, so most people buy insurance and don’t take the time to understand or update it. However, in the event of a disaster or emergency home owners may find that their insurance policies will not cover their costs and have to fork over their own money, which in turn could result in a debilitating financial situation. Even a simple case of Mold damage repair can cost tens of thousands of dollars.

While Californian homeowners must take some responsibility in knowing what is and isn’t covered by their insurance policy, insurance is not typically expressed in a way easily understood by the general population. It is in the homeowner’s best interest to protect themselves, their properties and possessions. Unfortunately the only way to effectively do this is to take the time to read and understand your insurance policy documents and if you have any questions or doubts to contact your insurance company and get a confirmation (preferably in writing) as to what is and is not covered. The better prepared you are, the less likely you’ll get any nasty surprises.

**Article is free to be reprinted as long as bio remains**

Sargeant Insurance is located in Los Angeles, CA. We specialize in personal and business lines insurance.Request a quote online by visiting our website at www.sargeantinsurance.com . Also, be sure to sign up for a monthly news, exclusive offers and tips at http://eepurl.com/tMPkL