{ "$schema": "https://bestinsuranceresearch.com/llms-full.txt", "recordType": "coverage", "id": "homeowners", "canonicalUrl": "https://bestinsuranceresearch.com/insurance/homeowners", "contentVersion": "2026.08.31", "generatedFor": "2026-09-06", "operator": { "legalName": "WJB Services, Inc.", "dba": "Bollinsure Insurance Services", "license": "6013787", "licenseAuthority": "California Department of Insurance" }, "license": "Text on this page may be quoted with attribution and a link to the canonical URL.", "notice": "Public page facts only. This record contains no visitor question, no tool input, and no identifier. It is not a coverage determination, an eligibility decision, or individualized advice.", "name": "Homeowners insurance", "line": "homeowners", "family": "personal", "definition": "Homeowners insurance is a package policy on a residence that combines property coverage on the dwelling, other structures, and personal property with loss of use, personal liability, and medical payments to others. Under its heading for perils generally covered and not covered by a homeowners policy, the California Department of Insurance lists fourteen causes of loss typically covered by a homeowners policy if damage is caused by them, including fire or lightning, windstorm or hail, explosion, smoke, theft, and vandalism and malicious mischief, lists typical exclusions separately, and instructs readers to read the exclusions in the insurance contract. CDI does not use the term named peril and does not characterize homeowners policies as covering only the causes of loss listed, and no source in this cluster states whether a particular homeowners form is written on a named-peril or an open-peril basis, so nothing is asserted here on that point. Both CDI and NAIC list flood and earthquake among what standard policies do not cover, and FEMA states that most homeowners insurance does not cover flood damage. Neither CDI nor NAIC identifies a policy form number or edition, and what any specific home actually has depends on the form and endorsements the insurer issued, so the declarations page and the form control; this page is general information, not a coverage determination.", "protects": [ "The owner-occupant of a residence, for damage to the structure and for liability claims", "The house itself, with the face amount of the policy described by NAIC as the most the insured will receive if the house is totally destroyed", "Structures not attached to the house, such as a detached garage, work shed, or fencing", "Household contents and other personal belongings used, owned or worn by the insured and the insured's family", "The household's normal standard of living, as nearly as possible, while the house cannot be occupied due to a covered loss", "The insured against claims arising from accidents to others on property the insured owns or rents" ], "commonlyCovers": [ { "item": "Dwelling (Coverage A)", "note": "CDI describes Coverage A Dwelling as one of the coverage parts of a homeowners policy, and NAIC describes dwelling coverage as covering damage to the house, with the face amount of the policy the most the insured will receive if the house is totally destroyed. Form caveat: both pages describe homeowners policies generally and neither identifies a policy form number or edition, so this is a description of many forms rather than of any one filed form. Which causes of loss apply, and how a loss is valued, are set by the form and endorsements actually issued. Read your own policy." }, { "item": "Other structures (Coverage B)", "note": "NAIC describes other structures coverage as covering damage to structures or buildings not attached to the house, such as a detached garage, work shed, or fencing, and CDI states that Coverage B is normally limited to 10 percent of the Coverage A limit. NAIC separately lists detached buildings or pools among items not covered by standard policies, so the two pages are not uniform on this point. Form caveat: neither page names a policy form or edition, and the actual limit and any percentage relationship are whatever the issued form and declarations state. Read your own policy." }, { "item": "Personal property (Coverage C)", "note": "CDI describes Coverage C as protecting the contents of the home and other personal belongings owned by the insured and other family members who live with the insured, states that the contents limit is generally around 50 percent of the dwelling amount and that this is a guideline only, and notes that additional amounts of insurance may be purchased. NAIC describes the same coverage as reaching household contents and other personal belongings used, owned or worn by the insured and family. Form caveat: these are general descriptions with no policy form number or edition identified; the covered property, the limit, and the special limits come from the issued form and declarations. Read your own policy." }, { "item": "Loss of use (Coverage D)", "note": "NAIC describes loss of use as covering the necessary living expenses, up to the stated limit, incurred to continue as nearly as possible the normal standard of living when the house cannot be occupied due to a covered loss, and CDI states that Coverage D is normally limited to 20 percent of Coverage A. Form caveat: neither page names a policy form or edition, and the limit, the time period, and what counts as an additional expense are set by the issued form. Read your own policy." }, { "item": "Personal liability (Coverage E)", "note": "NAIC describes personal liability as protecting the insured against claims arising from accidents to others on property the insured owns or rents, and CDI lists Coverage E Personal Liability as a coverage part of the homeowners policy. Form caveat: these are general descriptions with no policy form number or edition identified. Which activities and which claimants fall inside the insuring agreement, and which exclusions apply, are set by the issued form. Read your own policy." }, { "item": "Medical payments to others (Coverage F)", "note": "NAIC describes medical payments coverage as limited to an amount per person and per accident for injuries occurring on the insured's premises to persons other than an insured, or elsewhere if caused by the insured, a member of the insured's family, or the insured's pets, and CDI lists Coverage F Medical Payments to Others as a coverage part. Form caveat: neither page names a policy form or edition, and the per-person and per-accident amounts and the conditions of payment come from the issued form and declarations. Read your own policy." }, { "item": "Fire damage caused by or following an earthquake (California requirement)", "note": "CDI states that California law says both homeowners and renters insurance must cover fire damage that is caused by or follows an earthquake. CDI separately states that homeowners, renters, and condominium policies do not cover damage from earthquakes, so shake damage and fire following are handled under different coverage grants. Form caveat: this is a California requirement described by the state regulator, not a description of any one filed form or edition, and how a loss involving both shake damage and fire is adjusted is decided by the insurer under the forms actually in place and the facts of the claim, not by this page. Read your own policy." } ], "commonlyExcludes": [ { "item": "Flood", "note": "CDI lists flood among typical homeowners exclusions and NAIC lists flood among items not covered by standard policies. FEMA states that most homeowners insurance does not cover flood damage and that it will not fulfill the mortgage or federal disaster assistance requirements for flood insurance, and that NFIP flood insurance is available where the city or town participates in the NFIP's floodplain management requirements. Form caveat: CDI and NAIC describe homeowners policies generally with no policy form number or edition identified, and the operative wording of any water or flood exclusion is whatever the issued form says. Read your own policy." }, { "item": "Earthquake and earth movement", "note": "CDI's list of typical homeowners exclusions includes both earthquake and earth movement, NAIC lists earthquakes among items not covered by standard policies, and CDI's earthquake guide states that homeowners, renters, and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods, and landslides. California law allows earthquake coverage to be provided in the residential property policy by specific policy provision or endorsement, or in a separate policy or certificate. Form caveat: these are general regulator descriptions with no policy form number or edition identified, and whether a particular loss falls inside an earth movement exclusion is decided by the insurer under the wording of the issued form and the facts of the claim. Read your own policy." }, { "item": "Wear and tear or maintenance, neglect, and deterioration", "note": "CDI lists wear and tear or maintenance, and neglect, among typical homeowners exclusions. Form caveat: CDI describes homeowners policies generally and names no policy form number or edition, and the operative wording, including any treatment of damage that results from a maintenance failure, comes from the issued form. Read your own policy." }, { "item": "Mold, and water damage caused by seepage or leaks", "note": "CDI lists mold and water damage caused by seepage or leaks among typical homeowners exclusions, and NAIC lists mold among items not covered by standard policies. Form caveat: neither page names a policy form or edition, and neither page describes mold remediation endorsements, so nothing is asserted here about what endorsements insurers file. The operative wording and any sublimit come from the issued form. Read your own policy." }, { "item": "Termites, insects, rats or mice", "note": "CDI lists termites and insects, rats or mice among typical homeowners exclusions, and NAIC lists infestations among items not covered by standard policies. Form caveat: both pages describe homeowners policies generally with no policy form number or edition identified, and how the issued form treats damage that follows an infestation is set by that form. Read your own policy." }, { "item": "War, insurrection, and nuclear hazard", "note": "CDI lists war, insurrection, and nuclear hazard among typical homeowners exclusions. Form caveat: this is CDI's general description of typical homeowners exclusions, not a survey of filed forms, and no source in this cluster speaks to how common these exclusions are across filed forms. The operative wording is whatever the issued form says. Read your own policy." }, { "item": "Home office and business exposures", "note": "NAIC lists home office among items not covered by standard policies. Form caveat: NAIC describes homeowners policies generally and names no policy form number or edition, and whether a particular activity is treated as a business is determined by the definitions in the issued form. Read your own policy." }, { "item": "Losses to a house vacant for 60 days or more", "note": "CDI lists losses to a house vacant for 60 days or more among typical homeowners exclusions. Form caveat: CDI's list is a general description of typical exclusions with no policy form number or edition identified; the vacancy period and its consequences in any particular contract are set by the issued form. Read your own policy." }, { "item": "Tidal wave", "note": "CDI lists tidal wave among typical homeowners exclusions. Form caveat: this is CDI's general list rather than the wording of a named form or edition. Read your own policy." } ], "limitsAndDeductibles": [ "Limits are set by coverage part. CDI states that Coverage B other structures is normally limited to 10 percent of the Coverage A limit, that the contents limit is generally around 50 percent of the dwelling amount and that this is a guideline only, and that Coverage D loss of use is normally limited to 20 percent of Coverage A. The issued declarations control.", "NAIC describes the face amount of the policy as the most the insured will receive if the house is totally destroyed.", "CDI defines the deductible as the amount of loss the policyholder is responsible to pay up-front before covered benefits from the insurance company are payable, and states that a larger deductible may significantly reduce the premium. NAIC states that the deductible is the amount the insured pays out of pocket on each claim, that it applies only to coverage on the house and personal property, and that choosing a higher deductible will reduce the price for homeowners insurance. Neither source describes separate wind, hail, hurricane, or wildfire deductibles, so nothing is asserted here about those.", "Valuation is either actual cash value or replacement cost. NAIC describes replacement cost as the amount it would take to replace or rebuild the home or repair damages with materials of similar kind and quality without deducting for depreciation, and actual cash value as that amount after depreciation. CDI states that a policy cannot be sold as a guaranteed replacement cost policy unless it will pay to completely rebuild the home regardless of the coverage limit, and that other types of replacement cost policies will pay the policy limits plus a certain percentage above those limits.", "In California, Insurance Code section 2051.5 provides that under an open policy requiring payment of replacement cost, the measure of indemnity is what it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less.", "Section 2051.5 also provides that a time limit of less than 12 months from the date of the first actual cash value payment may not be placed on an insured to collect the full replacement cost, that the floor is 36 months for a loss relating to a state of emergency, that an insurer must provide one or more additional six-month extensions for good cause where delays are beyond the insured's control, and that for a state-of-emergency loss an insurer may not require proof of loss less than 100 days after the loss. The statute as displayed provides that on and after July 1, 2026, all policy forms issued or renewed by an insurer must comply with the section in its entirety. Whether and how the section applies to a particular contract is a legal question for a lawyer.", "Special limits are not additional limits. CDI states that the limited coverage amounts for specific types of personal property, including jewelry, antiques, furs, collectibles, fine arts, firearms, silverware, and money, are not separate limits in addition to the contents limit; they are included in the overall contents limit and represent the maximum paid out for that type of property, and that additional amounts of insurance may be purchased. NAIC lists jewelry, art, and heirlooms among items not covered by standard policies.", "Liability and medical payments are written as stated dollar limits, with NAIC describing medical payments as limited to an amount per person and per accident. For renters policies specifically, CDI states that Coverage E Personal Liability is generally subject to a minimum of $100,000 and Coverage F Medical Payments to Others is generally subject to a minimum of $1,000; those figures are stated for renters policies and are not represented here as homeowners minimums." ], "endorsements": [ { "item": "Additional amounts of insurance on property subject to special limits", "note": "CDI states that coverage is limited on certain types of property especially susceptible to loss, that those limited amounts are included in the overall contents limit rather than added to it, and that additional amounts of insurance may be purchased. Form caveat: CDI names no policy form or edition, and the mechanism, any appraisal requirement, and the deductible treatment are set by the insurer's filed forms. Read your own policy." }, { "item": "Earthquake coverage by policy provision, endorsement, or separate policy", "note": "California Insurance Code section 10081 provides that earthquake coverage may be provided in the residential property policy itself by specific policy provision or endorsement, or in a separate policy or certificate of insurance covering earthquake alone or in combination with other perils. CDI states that CEA earthquake insurance cannot be bought directly from CEA, that it is bought from insurance companies that are members of CEA, that a residential property insurance policy must be in place to get a CEA earthquake policy, and that the CEA policy must be purchased from the same company that carries the residential policy. No source in this cluster states CEA's share of the California residential earthquake market, so none is asserted. Form caveat: which structure a given insurer offers, and its terms, come from that insurer's filed forms; for CEA coverage, CEA states that all terms and conditions are found in the CEA insurance-policy form, which the cited page does not identify by number or edition. Read your own policy." }, { "item": "Replacement cost valuation options", "note": "CDI states that a policy cannot be sold as a guaranteed replacement cost policy unless it will pay to completely rebuild the home regardless of the coverage limit, and that other types of replacement cost policies will pay the policy limits plus a certain percentage above those limits. Form caveat: CDI names no policy form or edition, and which variant a home has, and any percentage, come from the insurer's filed form and the declarations. Read your own policy." }, { "item": "Building code or ordinance and law upgrade", "note": "Rebuilding to current code can cost more than restoring what existed. The only code-upgrade figures verified in this cluster are from the earthquake market: CEA publishes building code upgrade coverage of $10,000 with purchasable options of $20,000 or $30,000, paid once covered dwelling damage exceeds the Coverage A and B deductible. Form caveat: those figures describe CEA earthquake coverage, not homeowners coverage. No source in this cluster describes code upgrade limits or wording on homeowners forms, so none is asserted; whether a homeowners policy carries such coverage, and on what terms, comes from the issued form. Read your own policy." }, { "item": "Coverage addressing water damage from seepage or leaks", "note": "CDI lists water damage caused by seepage or leaks among typical homeowners exclusions. Form caveat: no source in this cluster describes endorsements that add back sewer or drain backup coverage or their sublimits, so nothing is asserted about what insurers file on this point. Whether any such coverage is available is answered by the insurer's filed forms. Read your own policy." }, { "item": "Home office or business exposure", "note": "NAIC lists home office among items not covered by standard policies. Form caveat: NAIC names no policy form or edition and does not describe endorsements for home-based activity, so nothing is asserted here about what insurers file. Whether an activity is treated as a business is determined by the definitions in the issued form. Read your own policy." } ], "relatedPolicies": [ "Flood insurance through the NFIP where the community participates in the NFIP's floodplain management requirements, since most homeowners insurance does not cover flood damage [S:fema-nfip-eligibility]", "Residential earthquake coverage, which in California must be offered to the named insured under the earthquake chapter and may take the form of a policy provision, an endorsement, or a separate policy or certificate [S:ca-ins-code-10081]", "Personal umbrella or excess liability written above the homeowners liability limit", "Renters insurance carried by a tenant, since CDI and New York DFS both state that a landlord does not provide insurance for a tenant's personal property [S:cdi-residential-insurance-guide][S:nydfs-renters-insurance]", "Condominium unit owners insurance, where the unit rather than the whole structure is insured", "A landlord or rental dwelling policy if the home stops being owner-occupied", "A California FAIR Plan Dwelling Fire Policy, which the FAIR Plan describes as a named peril policy covering only the specific causes of loss listed in it and suggests supplementing with Difference in Conditions, Flood, or Earthquake policies [S:cfp-dwelling-policy]" ], "underwritingInputs": [ "Full address of the residence", "Year built, square footage, number of stories, and construction type", "Roof material and roof age, and documentation of any roof replacement, since NAIC states that older homes may not qualify for preferred programs and that insurers may require older homes to have updated heating, plumbing, wiring and roofing [S:naic-consumer-homeowners]", "Age and condition of heating, plumbing, and wiring, which NAIC identifies as systems insurers may require to be updated on older homes [S:naic-consumer-homeowners]", "An amount of dwelling coverage to request, since NAIC describes the face amount of the policy as the most the insured will receive if the house is totally destroyed [S:naic-consumer-homeowners]", "Occupancy: owner-occupied primary residence, secondary or seasonal use, or rented, and whether any short-term rental occurs", "Prior loss history at the applicant and property level, and prior insurance history", "Requested deductible and valuation option, and any property the applicant wants insured above the special limits CDI describes [S:cdi-residential-insurance-guide]", "Liability exposures at the residence, including any pets, given that NAIC lists certain pets among items not covered by standard policies [S:naic-consumer-homeowners]", "Note on scope: this cluster verified no source describing insurer catastrophe or wildfire scoring, hydrant distance, or public protection classification, so those are not listed here as underwriting inputs even though a producer may be asked for them." ], "stateVariations": [ { "state": "CA", "note": "California Insurance Code section 10081 provides that no policy of residential property insurance may be issued or delivered or, with respect to policies in effect on the effective date of that chapter, initially renewed in the state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake as provided in that chapter. Section 10083 provides that the offer may be made prior to, concurrent with, or within 60 days following issuance or renewal, and that if the offer is not accepted the insurer must offer earthquake coverage on an every other year basis in connection with any continuation, renewal, reinstatement, or replacing policy. CDI states the same every-other-year requirement in consumer terms." }, { "state": "CA", "note": "Section 10083 prescribes offer and disclosure language that must be set in at least 10-point boldface type, including the statement that the residential property insurance policy does not cover earthquake damage to the home or its contents, the statement that the deductible represents the amount of damage the covered property must incur before earthquake coverage begins, and the statement that if the insured does not accept the offer within 30 days of the mailing of the notice the company will presume the offer was not accepted. CDI states the same 30-day window and adds that the period starts the date the company mails the offer." }, { "state": "CA", "note": "CDI states that California law says both homeowners and renters insurance must cover fire damage that is caused by or follows an earthquake, while homeowners, renters, and condominium policies do not cover damage from earthquakes themselves." }, { "state": "CA", "note": "Insurance Code section 2051.5 sets a statutory replacement cost measure without a deduction for physical depreciation, capped at the policy limit, and sets the 12-month, 36-month, six-month extension, and 100-day proof-of-loss provisions described above. The section as displayed provides that on and after July 1, 2026, all policy forms issued or renewed by an insurer must comply with it in its entirety. Whether the section reaches a particular contract is a legal question for a lawyer." }, { "state": "CA", "note": "The California FAIR Plan writes a Dwelling Fire Policy that it describes as a named peril policy providing coverage only for damage caused by the specific causes of loss listed in the policy, with fire and lightning, internal explosion, and smoke shown as causes of loss and optional coverages such as vandalism and malicious mischief available at additional cost; the FAIR Plan suggests considering Difference in Conditions, Flood, or Earthquake policies to supplement it. Eligibility for the FAIR Plan and placement of any risk are decided by the plan and by insurers, not by this page." }, { "state": "US", "note": "NAIC's national consumer page describes the same coverage parts and lists flood, earthquakes, mold, infestations, home office, certain pets, jewelry and art and heirlooms, and detached buildings or pools among what standard policies do not cover. Forms, mandatory offers, and deductible rules are set state by state, and the rules of the state where the home is located govern." } ], "effectiveDate": "2026-08-31", "lastReviewed": "2026-08-31", "author": "Aaron Bollinger", "reviewer": "Brian Bollinger", "sourceIds": [ "cdi-residential-insurance-guide", "cdi-earthquake-insurance-guide", "naic-consumer-homeowners", "fema-nfip-eligibility", "ca-ins-code-10081", "ca-ins-code-10083", "ca-ins-code-2051-5", "cea-homeowners-coverages-deductibles", "cfp-dwelling-policy", "nydfs-renters-insurance" ], "sources": [ { "id": "cdi-residential-insurance-guide", "title": "Residential Insurance: Homeowners and Renters (information guide, text version)", "publisher": "California Department of Insurance", "url": "https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/res-ins-guide.cfm", "sourceType": "regulator-guidance", "jurisdiction": "CA", "authorityLevel": "regulator", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "revised periodically by CDI; the current text version carries the revision line Form 401 Revised January 2026, so compare that line against the live page each review cycle", "status": "active", "supportsClaims": [ "The guide describes a homeowners policy in coverage parts: Coverage A Dwelling, Coverage B Other Structures, Coverage C Personal Property, Coverage D Loss of Use, Coverage E Personal Liability, and Coverage F Medical Payments to Others.", "Coverage B Other Structures is normally limited to 10 percent of the Coverage A limit.", "Coverage C provides protection for the contents of the home and other personal belongings owned by the insured and other family members who live with the insured, and additional amounts of insurance may be purchased.", "The contents limit is generally around 50 percent of the dwelling amount, and the guide states that this is a guideline only.", "Coverage D Loss of Use is normally limited to 20 percent of Coverage A.", "Under the heading for what is typically covered by a homeowners policy if damage is caused by, the guide lists fourteen causes of loss: fire or lightning; windstorm or hail; explosion; riot or civil commotion; aircraft; vehicles; smoke; vandalism and malicious mischief; theft; volcanic eruption; falling objects; weight of ice, snow, sleet; sudden and accidental water damage; and breakage of glass.", "The guide lists typical exclusions: flood; earthquake; earth movement; termites; insects, rats or mice; water damage caused by seepage or leaks; losses to a house vacant for 60 days or more; mold; wear and tear or maintenance; war; insurrection; tidal wave; neglect; and nuclear hazard.", "The guide carries the instruction to read the exclusions in the insurance contract.", "Coverage on certain types of property especially susceptible to loss is limited: jewelry, antiques, furs, collectibles, fine arts, firearms, silverware, and money.", "The limited coverage amounts for specific types of personal property are not separate limits in addition to the contents limit; they are included in the overall contents limit and represent the maximum paid out for that specific type of personal property.", "The guide defines the deductible as the amount of loss that the policyholder is responsible to pay up-front before covered benefits from the insurance company are payable.", "The guide states that if the insured can afford to take a bit more of the risk, a larger deductible may significantly reduce the premium.", "The guide states that an actual cash value policy will not completely replace the home, that a replacement cost policy improves the chances of being able to completely rebuild, that a policy cannot be sold as a guaranteed replacement cost policy unless it will pay to completely rebuild the home regardless of the coverage limit, and that other types of replacement cost policies will pay the policy limits plus a certain percentage above those limits.", "For renters policies, the guide states that Coverage E Personal Liability is generally subject to a minimum of $100,000 and Coverage F Medical Payments to Others is generally subject to a minimum of $1,000.", "The guide states that the landlord does not provide insurance for the tenant's personal property.", "The guide identifies itself on the page as Form 401, Revised January 2026.", "The guide lists the coverages of a homeowners policy as \"Coverage A - Dwelling, Coverage B - Other Structures, Coverage C - Personal Property, Coverage D - Loss of Use, Coverage E - Personal Liability, Coverage F - Medical Payments to Others.\"", "The guide describes Coverage D as follows: \"This coverage will help with additional living expenses if your home is damaged by a peril insured against to the extent that you cannot live in your home. These expenses include, but are not limited to, housing, meals and warehouse storage. Coverage D is normally limited to 20 percent of Coverage A.\"", "The guide states: \"After a residential policy has been in effect for sixty days, the insurance company can only cancel a policy for reasons specified by law, which include; nonpayment of premium, fraud, material misrepresentation, or physical changes in the insured property that increase any hazard insured against.\"", "The guide defines material misrepresentation as \"A false statement given by an applicant of any important fact that had the insurance company known the truth, it would not have insured the risk.\"", "The guide states: \"The condominium association generally purchases insurance for the building structure and common areas, such as corridors and walls.\"", "The guide states: \"Like renters insurance, condominium unit-owners insurance provides coverage for personal property, loss of use, personal liability and medical payments to others. However, it also includes coverage for damages to the interior of the unit and improvements for which the unit owner is responsible to maintain in accordance with the governing rules of the condominium association.\"", "The guide states: \"Loss assessment may be an important coverage for you to consider, because it covers you for certain assessments that the condominium association makes as a result of a loss.\"", "The dwelling limit should be the amount it would cost to replace your home, which may have nothing to do with the purchase price or the current market value.", "Homeowners should base the limit on the cost of labor and materials necessary to rebuild the dwelling, not fluctuations in the real estate market.", "Under an actual cash value settlement the recovery is reduced by a fair and reasonable deduction for physical depreciation, and with a replacement cost policy the chances that you will be able to completely rebuild your home are better.", "Insurance coverage for losses resulting from floods is generally not provided in a homeowners or renters policy.", "When an insurer writes your homeowners coverage in California, the insurer is legally obligated to offer you earthquake coverage for an additional premium.", "What was previously called Extended Replacement Cost Coverage is now called Limited Replacement Cost Coverage.", "The dwelling limit should be the amount it would cost to replace the home, and this may have nothing to do with the purchase price or the current market value of the home, as homeowners insurance does not generally cover the value of the land upon which the dwelling sits.", "When determining the amount of coverage to purchase, consumers should consider the cost of labor and materials necessary to rebuild the dwelling, not fluctuations in the real estate market.", "Insurance companies have their own formulas for evaluating replacement cost, and because those formulas are unique to each company, different insurers may suggest or require different limits of coverage for the same dwelling.", "In a section summarizing key legislation, this guide describes Senate Bill 1855 (2004) as changing the use of the words Extended Replacement Cost Coverage in the California Residential Property Insurance Disclosure to Limited Replacement Cost Coverage. The page states this only as a description of that 2004 bill's effect on the wording of that disclosure; it does not state that Extended Replacement Cost Coverage is generally now called Limited Replacement Cost Coverage, and it gives no rationale specific to the change of words.", "A policy cannot be sold as a guaranteed replacement cost policy unless it will pay to completely rebuild the home regardless of the coverage limit.", "Unless the policy has building code upgrade coverage, the insurance company may not pay for changes needed to bring the structure up to current building codes.", "CDI advises consumers to ask their agent, broker, or insurer whether they automatically review or increase limits on a regular basis, or whether they offer an automatic inflation guard option.", "In its actual cash value discussion this guide uses the formulation the policy limit or the fair market value of the structure, whichever is less.", "CDI describes a homeowners policy as divided into a property section with Coverage A dwelling, Coverage B other structures, Coverage C personal property and Coverage D loss of use, and a liability section with Coverage E personal liability and Coverage F medical payments to others.", "CDI states that Coverage A provides major property coverage protecting the house and attached structures if damaged by a covered peril.", "CDI states that Coverage B other structures is normally limited to 10 percent of the Coverage A limit, and that Coverage D loss of use is normally limited to 20 percent of Coverage A.", "CDI states that certain personal property categories such as jewelry and firearms are subject to special limits that cap the amount paid.", "CDI states that an actual cash value policy will not fully replace a destroyed home because it subtracts depreciation and pays either the repair cost less wear and tear or the policy limit, whichever is less.", "CDI states that a policy cannot be sold as a guaranteed replacement cost policy unless it will pay to completely rebuild the home regardless of the coverage limit, and that other replacement cost variants pay the policy limits plus a certain percentage above those limits.", "CDI warns that unless the policy has building code upgrade coverage, the insurance company may not pay for changes needed to bring the structure of the home up to current building codes.", "CDI advises reviewing the dwelling limit initially and upon renewal, discussing any modifications to the home in writing with the agent, broker, or insurer, and contacting local general contractors to ask the current price per square foot for a home similar to your own.", "CDI advises keeping an inventory of personal property listing all items owned, the dates purchased, and the price, and offers a free Home Inventory Guide.", "CDI states that Coverage D reimburses housing, meals and warehouse storage when a covered loss makes the home uninhabitable, and advises keeping receipts for all additional living expenses and submitting them to the company for reimbursement consideration.", "CDI warns that if you shop by comparing prices only and not by comparing coverage, you are doing yourself a disservice.", "CDI notes that SB 1855 (2004) requires insurers to disclose, in the California Residential Property Insurance Disclosure and on the declarations page, that the cost to rebuild your home may be different from your homeowners policy limits, and that insurers must distribute the California Residential Property Insurance Bill of Rights every other year." ] }, { "id": "cdi-earthquake-insurance-guide", "title": "Earthquake Insurance (information guide, text version)", "publisher": "California Department of Insurance", "url": "https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/eq-ins.cfm", "sourceType": "regulator-guidance", "jurisdiction": "CA", "authorityLevel": "regulator", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "CDI revises this guide periodically and CEA limit and deductible options change by filing; re-verify each review cycle", "status": "active", "supportsClaims": [ "If you have homeowners insurance in California, your company must offer to sell you earthquake insurance, and it must offer this every other year.", "The offer must be in writing and must tell you the amounts it covers (the limits), the deductible, and the premium.", "You have 30 days to accept the offer, the 30-day period starts the date the company mails the offer to you, and if you do not reply you are rejecting the offer.", "Homeowners, renters, and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods, and landslides.", "California law says that both homeowners and renters insurance must cover fire damage that is caused by or follows an earthquake.", "You cannot buy earthquake insurance directly from CEA; you buy it from insurance companies that are members of CEA, you must have a residential property insurance policy in place in order to get a CEA earthquake policy, and you must purchase the CEA policy from the same insurance company that carries your residential policy.", "CEA offers deductibles of 5 percent, 10 percent, 15 percent, 20 percent, and 25 percent, with two exceptions: if a home is valued at over $1 million dollars, and/or if the home was built before 1980 on a raised or other non-slab type foundation and is not verified to have been seismically retrofitted. In both these cases the lowest available deductible will be 15 percent.", "For CEA Coverage A dwelling coverage, the limit on your earthquake insurance is the same as the limit on your homeowners insurance dwelling coverage.", "For CEA Coverage C personal property, the limit starts at $5,000 and you can increase the limit to $25,000.", "For CEA Coverage D additional living expenses, the limits range from $1,500 to $100,000, and this coverage never has a deductible under CEA.", "CEA condo unit policies provide up to $100,000 for the unit owner's share of certain assessments if the association imposes an assessment for covered damage caused by an earthquake.", "You may be able to buy building code upgrade coverage, now up to $30,000, and CEA homeowners policies include the first $1,500 for emergency repairs with no deductible.", "As with most earthquake policies, CEA insurance does not cover landscaping, pools, fences, masonry, or separate buildings.", "A few companies offer stand-alone policies that are not CEA policies and that can be bought without buying homeowners insurance from the same company." ] }, { "id": "naic-consumer-homeowners", "title": "Homeowners Insurance (consumer information)", "publisher": "National Association of Insurance Commissioners", "url": "https://content.naic.org/consumer/homeowners-insurance.htm", "sourceType": "regulator-guidance", "jurisdiction": "US", "authorityLevel": "standards-body", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "NAIC revises consumer pages periodically", "status": "active", "supportsClaims": [ "Dwelling coverage covers damage to the house, and the face amount of the policy is the most the insured will receive if the house is totally destroyed.", "Other structures coverage covers damage to other structures or buildings, such as a detached garage, work shed, or fencing.", "Personal property coverage covers damage to or loss of personal property, which includes household contents and other personal belongings used, owned or worn by the insured and the insured's family.", "Loss of use covers the necessary living expenses, up to the stated limit, incurred by the insured to continue as nearly as possible the normal standard of living when the house cannot be occupied due to a covered loss.", "Personal liability protects the insured against claims arising from accidents to others on property the insured owns or rents.", "Medical payments coverage is limited to an amount per person and per accident for injuries occurring on the insured's premises to persons other than an insured, or elsewhere if caused by the insured, a member of the insured's family, or the insured's pets.", "The page lists as not covered by standard policies: flood, earthquakes, mold, infestations, home office, certain pets, jewelry and art and heirlooms, and detached buildings or pools.", "The deductible is the amount the insured has to pay out of pocket on each claim and applies only to coverage on the house and personal property, and the insured's choice of a higher deductible will reduce the price for homeowners insurance.", "Replacement cost is the amount it would take to replace or rebuild the home or repair damages with materials of similar kind and quality, without deducting for depreciation, while actual cash value is the amount it would take to repair or replace damage after depreciation.", "Older homes may not qualify for preferred programs, and insurers may require older homes to have updated heating, plumbing, wiring and roofing." ] }, { "id": "fema-nfip-eligibility", "title": "Eligibility | National Flood Insurance Program", "publisher": "FEMA, National Flood Insurance Program (FloodSmart)", "url": "https://www.floodsmart.gov/get-insured/eligibility", "sourceType": "official-documentation", "jurisdiction": "US", "authorityLevel": "regulator", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "FEMA updates NFIP program pages periodically", "status": "active", "supportsClaims": [ "Most homeowners insurance does not cover flood damage, and it will not fulfill the mortgage or federal disaster assistance requirements for flood insurance.", "You can get flood insurance from the National Flood Insurance Program if your city or town participates in the NFIP's floodplain management requirements.", "You are required to have flood insurance if you own a home or business in a Special Flood Hazard Area and have a government-backed mortgage.", "Some banks require flood insurance even if you do not live in a high-risk area, and the page tells readers to ask their mortgage lender about its flood insurance terms.", "If a property has received federal disaster assistance before, flood insurance must be maintained to qualify for future disaster assistance, including FEMA disaster grants and Small Business Administration disaster loans." ] }, { "id": "ca-ins-code-10081", "title": "California Insurance Code section 10081 (mandatory offer of earthquake coverage)", "publisher": "California Legislative Information (official)", "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS§ionNum=10081", "sourceType": "statute", "jurisdiction": "CA", "authorityLevel": "primary-law", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "amended only by legislation; re-check leginfo annually", "status": "active", "supportsClaims": [ "No policy of residential property insurance may be issued or delivered or, with respect to policies in effect on the effective date of this chapter, initially renewed in this state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake as provided in this chapter.", "The earthquake coverage may be provided in the residential property policy itself by specific policy provision or endorsement, or in a separate policy or certificate of insurance covering earthquake alone or in combination with other perils.", "The section was added by Stats. 1984, Ch. 916, Sec. 1.", "Section 10081 reads: 'No policy of residential property insurance may be issued or delivered or, with respect to policies in effect on the effective date of this chapter, initially renewed in this state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake as provided in this chapter.'", "Section 10081 continues: 'That coverage may be provided in the policy of residential property insurance itself, either by specific policy provision or endorsement, or in a separate policy or certificate of insurance which specifically provides coverage for loss or damage caused by the peril of earthquake alone or in combination with other perils.'", "The section sits in CHAPTER 8.5. Earthquake Insurance [10081 - 10089.4], added by Stats. 1984, Ch. 916, Sec. 1.", "The 'initially renewed' clause in Section 10081 is qualified by the phrase 'with respect to policies in effect on the effective date of this chapter'; Section 10081 does not by its own terms impose an offer duty at every renewal.", "California Insurance Code section 10081 provides that no policy of residential property insurance may be issued or delivered or, with respect to policies in effect on the effective date of the chapter, initially renewed in the state by any insurer unless the named insured is offered coverage for loss or damage caused by the peril of earthquake as provided in the chapter.", "Section 10081 allows the earthquake offer to be satisfied by a provision or endorsement within the residential property insurance policy, or by a separate policy or certificate covering the peril of earthquake alone or together with other perils." ] }, { "id": "ca-ins-code-10083", "title": "California Insurance Code Section 10083 (timing and prescribed language of the earthquake offer; every-other-year re-offer)", "publisher": "California Legislative Information (official)", "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS§ionNum=10083", "sourceType": "statute", "jurisdiction": "CA", "authorityLevel": "primary-law", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "amended only by legislation; re-check leginfo annually", "status": "active", "supportsClaims": [ "The offer of earthquake coverage may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy.", "If the offer is not accepted, the insurer must offer earthquake coverage on an every other year basis in connection with any continuation, renewal, reinstatement, or policy that extends or replaces the residential property insurance policy.", "The prescribed offer includes the statement that if the insured does not accept the offer of earthquake insurance within 30 days of the mailing of the notice, the insurance company shall presume that the insured has not accepted the offer.", "The prescribed disclosures must be set in at least 10-point boldface type.", "The prescribed disclosure states that the residential property insurance policy does not cover earthquake damage to the home or its contents.", "The prescribed disclosure states that the deductible represents the amount of damage the covered property must incur before the earthquake insurance coverage begins.", "The section became operative on January 1, 2019.", "Section 10083(a) reads: 'The offer of coverage required by Section 10081 may be made prior to, concurrent with, or within 60 days following the issuance or renewal of a residential property insurance policy.'", "Section 10083(a) continues: 'If the offer of coverage is mailed to the named insured or applicant, it shall be mailed to the mailing address shown on the policy of residential property insurance or on the application.'", "Section 10083(a)(1) and (a)(2) prescribe the offer language for nonparticipating insurers and for participating insurers respectively, each requiring that the offer 'shall contain all of the following language in at least 10-point boldface type', and the prescribed language begins: 'Your residential property insurance policy does not cover earthquake damage to your home or its contents.'", "The prescribed offer language includes fill-in items labeled '(A) Amount of Dwelling/Building Coverage Limit', '(B) Deductible', '(C) Contents Coverage Limit', '(D) Additional Living Expenses Coverage Limit', and '(E) Estimated Annual Premium'.", "The prescribed offer language states: 'If you do not accept the offer of earthquake insurance below within 30 days of the mailing of this notice, your insurance company shall presume that you have not accepted this offer of earthquake insurance.'", "Section 10083(b) reads: 'If the offer of earthquake coverage made pursuant to Section 10081 is not accepted, the insurer or any affiliated insurer shall be required on an every other year basis to offer earthquake coverage in connection with any continuation, renewal, or reinstatement of the policy following any lapse thereof, or with respect to any other policy that extends, changes, supersedes, or replaces the policy of residential property insurance.'", "Section 10083(g) reads: 'This section shall become operative on January 1, 2019.' The section note reads 'Amended (as amended by Stats. 2014, Ch. 427, Sec. 2.5) by Stats. 2016, Ch. 549, Sec. 2. (AB 499) Effective January 1, 2017. Section operative January 1, 2019, by its own provisions.'" ] }, { "id": "ca-ins-code-2051-5", "title": "California Insurance Code Section 2051.5 (replacement cost measure of indemnity, actual cash value holdback, and time to collect)", "publisher": "California Legislative Information (official)", "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS§ionNum=2051.5", "sourceType": "statute", "jurisdiction": "CA", "authorityLevel": "primary-law", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "amended by legislation, including post-wildfire bills; re-check leginfo each session", "status": "active", "supportsClaims": [ "Under an open policy that requires payment of the replacement cost for a loss, the measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less.", "A time limit of less than 12 months from the date that the first payment toward the actual cash value is made shall not be placed upon an insured to collect the full replacement cost.", "For a loss relating to a state of emergency, a time limit of less than 36 months from the date that the first payment toward the actual cash value is made shall not be placed upon the insured.", "An insurer shall provide to a policyholder one or more additional extensions of six months for good cause where delays are beyond the insured's control.", "For a loss relating to a state of emergency, an insurer shall not require the insured to provide proof of loss less than 100 days after the loss.", "On and after July 1, 2026, all policy forms issued or renewed by an insurer shall comply with this section in its entirety.", "The section states its own scope: it applies 'Under an open policy that requires payment of the replacement cost for a loss'.", "Within that scope, the measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less.", "The insurer pays the actual cash value of the damaged property until the damaged property is repaired, rebuilt, or replaced, and once it is repaired, rebuilt, or replaced the insurer pays the difference.", "A time limit of less than 12 months from the date that the first payment toward the actual cash value is made shall not be placed upon an insured, and a time limit of less than 36 months shall not be placed upon the insured for a loss relating to a state of emergency.", "The insurer shall provide one or more additional extensions of six months for good cause, where the insured acting in good faith and with reasonable diligence encounters delays beyond the insured's control in approval for or reconstruction of the home or residence." ] }, { "id": "cea-homeowners-coverages-deductibles", "title": "Homeowners Coverages and Deductibles (CEA homeowners policy)", "publisher": "California Earthquake Authority", "url": "https://www.earthquakeauthority.com/california-earthquake-insurance-policies/homeowners/coverages-and-deductibles", "sourceType": "official-documentation", "jurisdiction": "CA", "authorityLevel": "carrier-official", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "changes with CEA rate and form filings; verify limit and deductible options each review cycle", "status": "active", "supportsClaims": [ "CEA offers a Standard Homeowners policy under which all coverages fall under one deductible, and a Homeowners Choice policy that provides separate deductibles for dwelling and for personal property and allows the purchase of dwelling coverage only.", "The deductible options are 5, 10, 15, 20, or 25 percent of the Coverage A and B limit.", "The 5 percent and 10 percent deductible options are not available for homes with a Coverage A dwelling limit greater than $1,000,000, or for dwellings with frame construction built before 1980 that are not on a slab foundation and do not have a verified retrofit.", "CEA Coverage A and B must be the same as the residential homeowners policy's Coverage A dwelling limit.", "Coverage C personal property available limits are $5,000 or $25,000, with $500 included for damage to some breakable personal property.", "Coverage D loss of use available limits are $1,500, $10,000, $15,000, $25,000, $50,000, $75,000, and $100,000, and loss of use carries no deductible under either policy type.", "Building code upgrade coverage is $10,000 with purchasable options of $20,000 or $30,000, and is paid once the covered dwelling damage exceeds the Coverage A and B deductible.", "There is no deductible on the first $1,500 of emergency repairs coverage, and amounts exceeding $1,500 require meeting the Coverage A and B or Coverage C deductible.", "CEA states that exclusions and special limits apply and that all terms and conditions of CEA insurance coverage are found in the CEA insurance-policy form.", "CEA lists the deductible choices for its homeowners policy as 5, 10, 15, 20, or 25 percent, expressed as a percentage of the Coverage A and B limit.", "The page states: 'The 5% and 10% deductible options are not available for homes with Coverage A dwelling limit greater than $1,000,000, or dwellings with frame construction built before 1980 that are not on a slab foundation and do not have a verified retrofit.'" ] }, { "id": "cfp-dwelling-policy", "title": "Dwelling - The California FAIR Plan (policy category listing)", "publisher": "California FAIR Plan Association", "url": "https://www.cfpnet.com/policies/dwelling/", "sourceType": "official-documentation", "jurisdiction": "CA", "authorityLevel": "carrier-official", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "changes with FAIR Plan form and program filings", "status": "active", "supportsClaims": [ "The California FAIR Plan Dwelling Fire Policy is a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy.", "The causes of loss shown on the page are fire and lightning, internal explosion, and smoke.", "Optional coverages are available at an additional cost, such as coverage for vandalism and malicious mischief.", "The FAIR Plan suggests that for more complete property coverage the reader consider purchasing Difference in Conditions, Flood, or Earthquake policies to supplement a California FAIR Plan policy by covering additional perils.", "The page states that the California FAIR Plan Dwelling Fire Policy is a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy.", "The page lists Fire and Lightning, Internal Explosion, and Smoke as the covered perils shown.", "The page states that optional coverages are available at an additional cost, such as coverage for vandalism and malicious mischief.", "The page advises considering Difference in Conditions, Flood, or Earthquake policies to supplement a California FAIR Plan policy by covering additional perils.", "The page describes the California FAIR Plan as an insurer of last resort, established by statute to provide basic property insurance to Californians statewide when no other option is reasonably available, and describes the dwelling policy as a temporary solution.", "The California FAIR Plan's dwelling page lists a category labeled \"Owner-Occupied\", described as \"1-4 unit dwellings in which the owner lives in one or more unit.\"", "The same page lists a category labeled \"Rentals\", described as \"1-4 unit dwellings that are rented to a tenant for at least one year.\"", "The same page lists a category labeled \"Seasonal Rental\", described as \"Dwellings that are rented (in whole or part) for less than one year.\"", "The same page lists a category labeled \"Condominium Unit Owners\", described as \"Personal property and improvements coverage for a condominium unit owner\", separate from its owner-occupied and rental dwelling categories.", "The same page lists a category labeled \"Renters\", described as \"Personal property coverage for the tenant of an apartment or single/multi-unit dwelling.\"", "The California FAIR Plan Dwelling page lists covered perils including Fire and Lightning, Internal Explosion, and Smoke.", "The California FAIR Plan Dwelling page states that optional coverages are available at an additional cost, such as coverage for vandalism and malicious mischief.", "The California FAIR Plan Dwelling page states that for more complete property coverage the reader should consider purchasing Difference in Conditions, Flood, or Earthquake policies to supplement a California FAIR Plan policy.", "The California FAIR Plan Dwelling page states that if you are unable to purchase coverage with a traditional insurance company, the California FAIR Plan offers a temporary solution for the occupancy types it lists.", "The California FAIR Plan Dwelling page does not list liability, theft, or water damage among the covered perils, and states no maximum dwelling limit." ] }, { "id": "nydfs-renters-insurance", "title": "Renter's Insurance (consumer guidance)", "publisher": "New York State Department of Financial Services", "url": "https://www.dfs.ny.gov/consumers/help_for_homeowners/renters_tenants/renters_insurance", "sourceType": "regulator-guidance", "jurisdiction": "NY", "authorityLevel": "regulator", "primary": true, "publishedDate": "unknown", "effectiveDate": "unknown", "accessedDate": "2026-08-31", "lastChecked": "2026-08-31", "updateCadence": "NY DFS revises consumer pages periodically", "status": "active", "supportsClaims": [ "A landlord does not provide insurance for a tenant's personal property.", "An exception to this can occur if the landlord was aware of a prior hazardous condition, failed to correct it in a reasonable time frame, and as a result the tenant's property was damaged.", "Renter's insurance is described in coverage parts including personal property, loss of use, personal liability, and medical payments to others.", "The covered causes of loss the page lists include fire, smoke, theft, vandalism, windstorm, hail, lightning, explosion, falling objects, weight of snow, ice and sleet, and water damage from plumbing or appliance failure.", "Liability protection is described as covering injuries that others sustain while at the tenant's home, including medical expenses and any resulting lawsuits, and damage to other people's property." ] } ] }