California Home Insurance Rates Up 6.5 Percent Since Same Time Last Year
WILMINGTON, N.C., Oct. 13, 2011 /PRNewswire/ -- HomeownersInsurance.com reported that average premiums on new homeowners policies sold in California were around $770 in May 2011. This was a 6.5 percent increase from May 2010 when the company reported average premiums in the Golden State were approximately $729.
HomeownersInsurance.com is a branch of HomeInsurance.com LLC, online insurance marketplace and a group of over 125 licensed agents selling property insurance across the U.S. HomeInsurance.com's CEO Carlos Lagomarsino, had this to say about average rates in California, "While we have seen a slight upward trend in the premiums we are selling in California, the average premium sold is still fairly low compared to some other states in the country."
Comparatively, some coastal and hurricane-prone areas are seeing rates upwards from $1,000/year.
"Some of the biggest factors affecting homeowners insurance premiums these days are the proximity to the coastline, the fire safety rating of the community and the amount of coverage that a homeowner is carrying," said Jana Bell, Co-CEO of HomeInsurance.com. "However, due to our relationship with the top home and auto insurance carriers in the country, we are able to offer competitive discounts for our California homeowners."
The overall cost of hazard insurance for California homeowners is also affected by specific hazards in the area, namely, the frequency of earthquakes. Since earthquake damage is not covered by a standard homeowners policy, many California homeowners typically carry a separate earthquake policy to protect them against the peril. According to the California Earthquake Authority premium calculator, the cost to insure a home in Los Angeles against earthquake damage with a $400,000 replacement cost is around $732/year.
About HomeownersInsurance.com:
HomeownersInsurance.com is an online insurance shopping site owned and operated by HomeInsurance.com LLC. The company provides comparative rate quotes on homeowners and auto insurance with the leading U.S. providers including Travelers, Safeco, The Hartford, ASI/Ark Royal, Foremost and Progressive.
SOURCE HomeownersInsurance.com
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