Homeowners Insurance Coverage In California

There are two basic categories of coverage for homeowners in California. These two categories include actual cash value coverage and replacement cost coverage.

Generally its best to go with a replacement cost coverage. With this you’ll be better covered since actual cash value coverage will only pay out for the fair market value of your home. A replacement cost policy will provide you with a specified amount for the repair or replacement of your property. Extended replacement cost home coverage will provide a percentage above the original policy limits if the cost of your home rises over time. This keeps California homeowners protected against the increased cost of construction in California.

What comes with a standard homeowners policy in California?

The homeowners policy contains two sections.

Section 1 provides property coverages (A, B, C and D)

Section 2 provides liability coverages (E and F). A brief description of the individual coverages follows:

Coverage A – DwellingCoverage B – Other StructuresCoverage C – Personal PropertyCoverage D – Loss of UseCoverage E – Personal Liability

Coverage F – Medical Payments to Others