Personal Insurance in California

What is Personal Insurance?

Almost everyone is exposed to some risks, and it’s important to protect against these risks whenever possible. Purchasing personal insurance is one way that California residents can financially protect themselves from a variety of covered perils.

“Personal insurance” doesn’t refer to one specific type of insurance, but instead distinguishes insurance policies that are underwritten for individuals from those that are underwritten for businesses. The policies that businesses purchase are “commercial insurance.”

Who in California should have Insurance?

The vast majority of California residents should consider at least some personal policies. The policy types that residents ought to carry might vary, but almost no one is free from all potential risks. Without at least some insurance in place, a single claim could be financially devastating.

What types of Personal Policies do Insurance Companies offer?

In order to meet the diverse needs of different individuals, insurance companies offer a variety of personal policies. Some of the more common personal policies are:

• Homeowners, renters and condo insurance policies
• Auto and classic car insurance policies
• RV, motorcycle and boat insurance policies
• Earthquake and flood insurance policies
• Umbrella liability insurance policies

In addition to these, residents might also want/need life insurance, individual health insurance and/or travel insurance. These all fall under the broad category of personal policies when they’re used to protect an individual or their beneficiaries.

An insurance broker who specializes in personal policies can help residents explore all available insurance options. The broker can both check for policies and detail how policies may provide protection in different scenarios.

How are Insurance Policy Premiums determined?

Insurance companies base insurance policies’ premiums on many factors. Some of the more notable factors include the:

• Location of the insured property (if applicable)
• Size and value of the property
• Security systems installed on the property
• Coverages, deductibles and limits chosen
• Age, gender and marital status of the policyholder
• Recent claims history of the policyholder

Some of these factors are only relevant when insuring physical property, such as a house. Life insurance, health insurance, and other properties outside of property and casualty insurance are based on other factors.

How can residents save on their Insurance Premiums?

Many insurance companies offer discounts, which may encompass loyalty, multi-policy, automatic payment and other discounts. All of these are naturally worth pursuing when they’re available.

In addition to getting discounts, residents can often also reduce their insurance premiums by shopping around with an independent insurance broker. An independent broker has the flexibility to show policy options from different insurance companies, which makes comparing coverages and premiums easy.

What is an Insurance Binder?

An insurance binder is a temporary contract to provide insurance. It guarantees that an insurance company will provide temporary coverage, pending the ultimate acceptance or rejection of an insurance application. While a full application can take weeks to review, a binder can usually be furnished within one or a few days.

Sometimes residents are asked to furnish insurance binders. For example, mortgage underwriters might require this before signing off on a home’s financing. 

A knowledgeable insurance broker will be familiar with insurance binders, and they’ll know how to quickly obtain one if a binder is needed.

How can residents in California get Personal Insurance?

For help finding personal insurance policies in California, contact the independent insurance agents at Heffernan Walton Insurance. Our agents have the expertise necessary to help you find the best personal policies from what’s available, and we can recommend the best policies no matter what insurance company is offering them. With our assistance, you can be confident that you’re well protected through personal policies.