California Homeowners: Insuring Your Home Against Fires

It’s important to get California Home Insurance as a homeowner in this state, especially when it comes to insuring your home against fires. With massive wildfires that struck the state last year, many insurers have opted to charge extra for coverage, according to the Los Angeles Times. You may live in a fire zone and not even know it, so it’s good to be prepared. When your home burns, homeowners insurance can help pay for the cost to rebuild it.

There’s three different types of policies that cover fires, named HO-1, HO-2 and HO-3, and their type of fire coverage ranges heavily. While HO-1 is restrictive, HO-2 protects against 16 specific damages and HO-3 protects against any damage not specifically exempted. As the homeowner, it’s important that you know which type of policy you’re getting, how it will protect you, and how much it’s going to cost you.

Types of Insurance

Homeowners insurance comes in different forms, with the most popular form being HO-3, according to the Insurance Information Institute. HO-3 covers the structure of the home and personal belongings; the policy also has personal liability coverage. An actual-cash-value policy isn’t as extensive as a replacement-value policy, which costs more. A replacement-value policy will cover the cost of rebuilding or replacing damaged property, which often equates to more money than the original house was worth.

What your Insurance Covers

Furniture, clothing, sports equipment and other personal assets are covered if they are destroyed by a fire. Most companies provide some type of safety net: anywhere from 50 to 70 percent of building coverage. Your insurance covers property damage, including if something happens during a natural disaster, depending on what policy you have. You get liability protection so you’re covered in the event of an accident and you get additional living expenses, just in case your home isn’t habitable and you need somewhere temporary to stay.

Benefits and Limits to Your Insurance

One big benefit is the fact that you can get additional living expenses in the event of a fire.  Giving you a place to live while you’re out of a home is one of the best parts of having that type of insurance coverage. However, if a family member or soon-to-be ex-spouse intentionally burns down your house, you won’t be covered. Another thing to worry about is how much you’re going to be spending on your coverage. Insurers didn’t renew up to 10,000 policies in 2016 after previous fire disasters, according to CNBC. That means it’s that much tougher to make sure that you are covered with home insurance in California, especially if more damaging wildfires occur..


About ISU / The Olson Duncan Agency

At ISU-The Olson Duncan Agency, our goal is to provide clients with a total solution, not just a quote or a contract. We provide businesses and individuals with insurance and risk management solutions, and we aim to provide real value and build trustworthy, long-term relationships with our clients. To learn more about our services, give us a call today at (310) 373-6441 to speak with one of our professionals.