California is famous for its sunshine, coastlines, forests, deserts, plains, mountains, but in recent years, it’s known for something else, too: a difficult homeowners insurance market. The very geographic features that make California a desirable place to live can also increase wildfire risk. Changing climate patterns have only intensified wildfire activity through longer dry seasons, drier soils and vegetation, and more frequent and longer droughts. This is one of the primary reasons many national insurers have exited California.

By contrast, SageSure specializes in protecting homes in catastrophe-exposed regions of the US. Our partnerships with highly rated insurers and our catastrophe risk underwriting expertise means California homeowners can count on us for reliable solutions.

Key Insurance Policies for California Homeowners

Learn how the following types of coverage help protect California homes.

Homeowners Insurance

Homeowners insurance can help cover repair and replacement costs for the home, other structures on the property, and belongings when they are lost or damaged by covered events, such as fire, theft, wind, and more.

This policy can also help pay for additional living expenses when the home is uninhabitable because of a covered loss. It can also step in when the homeowner is liable for a visitor’s medical expenses or damage to someone else’s property.

The home and other structures are generally insured on an open-perils basis, which means all loss events are typically covered other than those listed as exclusions in the policy. For example, earthquakes, floods, nuclear disasters, acts of war, and intentional loss are often excluded.

Personal belongings are usually covered on a named-perils basis, which means coverage is applicable only for loss events listed in the policy. This typically includes fire, lightning, windstorm or hail, explosion, riot, aircraft damage, vehicle damage, vandalism, theft, and more. An endorsement can be added to insure belongings on an open-perils basis for more coverage.

Dwelling Fire Insurance (DP3 Policy)

Dwelling fire (DP3) policies are becoming more common in California because they offer a cost-effective way for property owners to insure structures that aren’t their primary residence, such as rental properties and seasonal homes.

A DP3 policy covers the dwelling and other structures on the property, offering protection against common sources of loss and damage. Despite its name, a dwelling fire policy covers more than just fire damage. Because it covers structures on an open-perils basis, it can help pay for losses caused by any event except those listed as exclusions in the policy.

Personal property and loss of rent are also included, while personal liability and medical payments coverage are optional. Because a dwelling fire policy usually has a narrower scope of coverage than a full homeowners policy, it is typically more affordable.

Earthquake Insurance

It’s important to note that standard homeowners and dwelling fire policies, no matter how robust, typically don’t provide coverage for earthquake damage. Earthquake coverage must be added on or purchased as a separate policy.

California experiences a high number of earthquakes because the San Andreas Fault runs through most of the state. As the Pacific Plate and the North American Plate move against each other, they create stress along the the San Andreas Fault, which leads to frequent seismic activity throughout California.

Earthquake insurance provides essential financial protection by covering damages caused by seismic events. This coverage can help pay for repairs to the home and other structures, personal property replacement, and additional living expenses if the home becomes uninhabitable because of earthquake damage.