Wildfires have become an unfortunate reality in California, being prepared is the best way to protect your biggest asset—your home. One thing you don’t want to find out after disaster strikes? That you don’t have enough insurance coverage.
Let’s break it down in an easy-to-follow manner: how to make sure your homeowner’s insurance has your back when you need it most.
1️⃣ Annual Insurance Checkup—Yes, You Need One
Think of this like your annual doctor’s visit but for your house. Call your insurance agent or company once a year and go over your policy. Make sure:
✅ Your coverage reflects your home’s correct square footage and features.
✅ You have enough coverage to actually rebuild if needed.
✅ You consider adding building code upgrade coverage (because rebuilding to today’s standards costs more).
2️⃣ Do You Know What Your Policy Actually Covers?
There are two main types of policies:
Replacement Cost Policy – Covers the full cost to replace your items at current market value. (This is what you want.)
Actual Cash Value Policy – Only covers the depreciated value of your stuff (which means you get way less $$$).
If you’re not sure what you have, call your agent and ask!
3️⃣ Made Home Improvements? Update That Policy!
Just redid your kitchen with those dreamy quartz countertops? Added a home office or new flooring? If you don’t update your policy, your insurance might only cover what your home used to have.
Pro tip: Anytime you upgrade, renovate, or remodel, check in with your insurance provider.
4️⃣ Take Inventory of Your Stuff (It’s Easier Than You Think)
Imagine trying to remember everything you own after a disaster. Sounds awful, right?
Make it easy on yourself:
Walk through your house and take a quick video of everything.
Store it in the cloud (Google Drive, iCloud, Dropbox—whatever works).
Bonus points: Keep a list of big-ticket items like electronics, furniture, and appliances.
5️⃣ Check If You Have Additional Living Expenses (ALE) Coverage
If your home is unlivable after a wildfire, where do you go? Hotels and rentals aren’t cheap, so make sure your policy includes Additional Living Expenses (ALE) coverage. This pays for temporary housing, food, and other expenses while your home is being repaired.
6️⃣ What About Earthquakes and Floods?
News flash: Standard homeowners insurance doesn’t cover earthquakes or floods. If you want that protection, you’ll need separate policies. And in California? It’s definitely worth considering.
The Final Word
Your home is your biggest investment. Protect it like you would anything else you love. Talk to your insurance provider, understand what’s covered, and make sure you have enough protection.
Disclaimer: We’re real estate professionals, not insurance experts. This is for informational purposes only—please do your own research and consult with a licensed insurance pro to make sure your coverage is right for you!
