What a Standard Homeowners Policy Covers
A standard HO-3 homeowners policy typically includes:
- Dwelling coverage: Rebuilding costs if your home is damaged or destroyed
- Personal property: Furniture, electronics, clothing, and other belongings
- Liability: Legal protection if someone is injured on your property
- Additional living expenses: Hotel and food costs if you're displaced
- Other structures: Fences, detached garages, sheds
What Is NOT Covered (Important for California)
- Earthquakes: Not covered by standard policies — requires a separate CEA earthquake policy
- Floods: Not covered — requires a separate NFIP or private flood policy
- Wildfires: Covered by most standard policies, but some carriers are non-renewing in high-risk areas
- Sewer backup: Usually excluded unless you add a rider
- Wear and tear: Insurance covers sudden damage, not gradual deterioration
Wildfire Risk and the California Insurance Crisis
Several major insurers have stopped writing new homeowners policies in California due to wildfire risk. If you've been non-renewed, you have options — the California FAIR Plan is the state's insurer of last resort, and independent brokers like CoverGuard can find surplus lines carriers that still write in high-risk areas.
How Much Coverage Do You Need?
Your dwelling coverage should reflect the cost to rebuild your home, not its market value. In California, construction costs have risen sharply — many homeowners are underinsured. Ask your broker about guaranteed replacement cost coverage to protect against this.
Discounts to Ask About
- New home or recently renovated discount
- Security system and smoke detector discounts
- Bundle discount (auto + home with same carrier)
- Loyalty discounts for staying with the same carrier
- Claims-free discount