3 minute readHome
Fire, including wildfire, is a standard covered peril on nearly every California homeowners policy. The real risks are being underinsured for today's rebuild cost, having too little loss of use coverage for a long displacement, and losing standard-market availability in high-brush areas.
What you need to know
Coverage is usually there — limits are the issue
Total-loss rebuilds in California routinely exceed old dwelling limits. Extended replacement cost and updated valuations matter more than the peril itself.
Loss of use is the overlooked line
Rebuild timelines after a major fire can run a year or more. Check whether your additional living expense is a percentage of dwelling and whether it has a time cap.
Availability and the FAIR Plan
If admitted carriers decline your address, a FAIR Plan policy plus a difference-in-conditions policy is the common structure.
Common mistakes
- Insuring the home to market value or loan balance instead of today's rebuild cost.
- Leaving liability at the lowest available limit with no umbrella above it.
- Assuming flood and earthquake are included — both are separate in California.
- Never scheduling jewelry, art or other items that carry low special limits.
- Filing small claims that cost more in renewal pricing than they paid out.
When to talk to an agent
Talk to an agent when your premium jumps, when you renovate or rent out the home, when you are told you are being non-renewed, or any time you cannot tell from the declarations page what your policy would actually pay.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.