The Home Insurance Rates in California are on the Move

Home insurance rates in California are all over the place. One company may charge nearly three times the premium of another company while a third company might offer an abundance of clauses and no pay situations. It is like trying to purchase a mine field without actually purchasing a land mine when you are looking at the home insurance rates in California.

Of course, home insurance rates in California have always been on a strange scale. With the natural disasters of the eighties and early nineties, many insurance companies began looking at the likelihood of an increased rate of natural disasters. Since insurance companies like to save money, many of them wrote in addendums that alleviated their responsibility in certain natural disaster situations. Other insurance companies pumped up their premiums expecting a long term wave of natural disasters and then began to drop their rates as nothing outrageous occurred. Home insurance rates in California have never really settled despite the fact that the wave of natural disasters has seemed to decline some.

Some insurance companies have looked into the expert advice of geologists, and other scientific experts to determine the likelihood of a massive natural disaster such as a tsunami. There are some companies whose home insurance rates reflect the scientific possibility of another major natural disaster happening in the next ten years. However, since many experts have abandoned the notion that the state will fall into the ocean, as many stated with authority, by the year 2002. With so many experts predicting horrible events that have never happened, the home insurance rates in California that have yet to come down reasonably are having trouble maintaining their position.

When checking out the wide variety of home insurance rates in California, note the wide variety of coverage and perhaps more importantly the loop holes in many policies. It is possible to find home insurance rates in California that offer reasonable rates for reasonable coverage without taking into account the possibility of the end of the world predictions. Or at least the end of California predictions. There will always be a natural disaster waiting in the wings for any region. The fact that home insurance rates in California are still reflecting the possible next natural disaster is a little ridiculous considering that over the last ten years the state has not experienced an outlandish number of natural disaster incidents.

Legislation is finally getting involved in the war of home insurance rates in California. Of course, in the wealthy counties, the rates most definitely reflect that possible loss of multi million dollar homes. These rates shouldn't be applied to homes that were not purchased for millions of dollars, and perhaps someday there will be an appropriate legislative addendum to help stabilize the home insurance rates in California.