Homeowners Insurance
Homeowners insurance is a policy that protects your home and your belongings against damage, theft, and liability. It covers the structure of your home, the things inside it, and your personal liability if someone is injured on your property.
What Does Homeowners Insurance Cover in California?
Liability
1
Dwelling coverage pays to repair or rebuild the physical structure of your home if it is damaged by a covered event. This includes the walls, roof, floors, built-in appliances, and attached structures like a garage.
Personal Property Coverage
2
Personal property coverage protects your belongings inside your home. Furniture, electronics, clothing, appliances, and other personal items are covered if they are damaged or stolen. Most people underestimate how much their belongings are worth until they have to replace everything at once.
Liability Coverage
3
If someone is injured on your property and decides to sue you, liability coverage pays for your legal costs and any settlements. It also covers damage you or your family members accidentally cause to someone else's property.
Additional Living Expenses
4
If your home becomes uninhabitable due to a covered event, additional living expenses coverage pays for your temporary housing costs including hotel bills, meals, and other living expenses while your home is being repaired.
Other Structures Coverage
5
This covers structures on your property that are not attached to your main home, such as a detached garage, a fence, a shed, or a guest house.
Frequently asked questions
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It is not required by law. However, if you have a mortgage, your lender will require it. And even without a mortgage, going without coverage puts everything you own at risk.
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Most standard homeowners policies do cover wildfire damage. However, some carriers have stopped writing policies in high-risk areas. If you are in or near a wildfire zone, it is important to review your policy carefully and make sure you have adequate coverage.
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No. Earthquake damage is specifically excluded from standard homeowners policies in California. You need to purchase a separate earthquake insurance policy. Given California's seismic activity, this is worth considering.
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Replacement cost coverage pays to repair or replace your home and belongings at today's prices. Actual cash value coverage pays the depreciated value. Replacement cost is almost always the better option even though it costs slightly more.
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You need enough dwelling coverage to fully rebuild your home from the ground up at current construction costs. This is often different from the market value of your home. Your agent can help you calculate the right amount.