There are many reasons why people acquire things, some desire things because they simply want it; others buy things because they need it. Sad to say, some people buy things out of fear and fear is the greatest motivation. People buy something just to feel secure. Nowadays, there is no constant, everything can change in a blink of an eye. One moment you are living in a very luxurious house then the next thing, you realize you are homeless. Accidents and Natural disasters happen; no one can be prepared enough when it strikes. Everyone longs for a safe home to live in but what if in an instant; this happy home was destroyed because of an accident or a calamity? How can one start over when everything is lost? Home insurance is the answer.

Today's weather is rapidly changing; it is due to climate change which is caused by global warming. Freak rains, tsunamis and super typhoons occur more often. These fearful disasters have caused many people to go to insurance agencies and inquire for home insurance quotes, California has many residents who have survived many natural calamities and these tragedies have taught them one lesson: "Stand up every after tragedy." The California Insurance Commission highly urges its resident to be practical and acquire quotes. The Commission believes that insurance is the best help a homeless victim of a natural disaster could have.

There are many Insurance companies based in California, each of these insurance companies has different qualifications and sets of policies. There are 3 types of home insurance, each have their on pros and cons, a home owner can choose any of these 3 as long as they are eligible to acquire a home insurance.

The 3 types of home insurance policy are: Actual Cash Value, Replacement Cost and Guaranteed or Extended Replacement Cost. Each of these has a level of protection for the client's house; the amount paid for each type varies also.

Actual Cash Value

The title itself explains this type of home insurance. This insurance promises to pay the actual cost of the claiming party's house, possessions and properties. However the claiming party will not receive the "Actual" value of their house because a deduction will implemented because of depreciation.

Replacement cost

This type of policy will pay for the cost of repairing or rebuilding your home. This type policy will also pay for the replacement cost of the owner's possession without a deduction for depreciation.

Guaranteed or extended replacement cost

Lastly Guaranteed or extended replacement cost policy has the highest level of protection. This type of policy will pay whatever it will cost to rebuild the client's home before it was destroyed by either fire or other disaster even if exceeds the policy limit.

Most home owners prefer this type of policy because it gives the claiming party protection against abrupt increase in construction cost due to a short of construction supplies after a widespread calamity, although this type of policy may not be available to home owners who has an older home.

Each of these policies has different advantages and disadvantages, it is up to the home owners to choose wisely which type can they afford and will suit their needs. Home insurance could really help a lot in rebuilding homes and dreams after tragedy occurred; it will help victims who lost their home and standing up again to face every day's challenges.

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