Home Owner Insurance in California

This is happening to many California homeowners right now, especially in Los Angeles County and surrounding areas. Several major insurance companies have stopped writing new policies or are choosing not to renew existing ones because of wildfire risk. It can feel alarming, but you still have options.

The first thing to do is avoid waiting until the last minute. You have a window between receiving the non-renewal notice and the date your current coverage ends. Use that time to find a replacement policy instead of scrambling just before your insurance expires.

As an independent agency, Strong Tie Insurance Services works with carriers that continue to offer home insurance in California, including in higher-risk areas. Some of our clients came to us after being dropped by their previous insurer and were surprised to find competitive options still available.

When necessary, we also help homeowners obtain coverage through the California FAIR Plan, the state’s insurer of last resort, and can pair it with a supplemental wrap-around policy to provide broader protection where the FAIR Plan has coverage limitations.

Call us or visit any of our offices, and we’ll review your situation. The sooner you begin the process, the more options you’ll have.

Yes — though it’s more difficult than it used to be and often more expensive. California’s wildfire situation has caused many national carriers to pull back from certain ZIP codes, but coverage is still available through specialty carriers and programs that understand the California market.

If your home is in a wildfire risk area, several factors matter when determining your insurance options, including the rebuild value of your home, the construction materials used (fire-resistant roofing and siding can help), the defensible space around the property, and any recent improvements you’ve made to reduce fire risk.

Strong Tie Insurance Services works with carriers that continue to write policies in fire-prone areas of Los Angeles County, the foothills, and other higher-risk regions. When necessary, we also help clients combine a California FAIR Plan policy with a Difference in Conditions (DIC) policy to provide more complete protection when a single carrier can’t cover everything.

Don’t assume you can’t get coverage just because one insurance company said no. Let us review your situation and help you explore all of your available options.

This is one of the most important — and most misunderstood — questions in home insurance. They’re two different numbers, and confusing them can leave you seriously underinsured.

The market value of your home is what someone would pay for it today, including the land, the location, and current real estate market conditions. Your insurance coverage, however, is based on the rebuild cost — what it would cost to demolish what’s left and rebuild the structure from the ground up using current labor and material costs.

In Southern California, rebuild costs have increased dramatically in recent years. Labor is more expensive, building materials cost more, and permitting can take time. A home that might sell for $600,000 could cost $700,000 or more to rebuild. If your coverage is based on the market value instead of the rebuild cost, you could be significantly underinsured after a total loss.

When you work with Strong Tie Insurance Services, we help make sure your coverage is based on an accurate rebuild estimate, not simply your home’s purchase price or what you paid years ago. This is one of the most common coverage gaps we find when reviewing existing homeowners insurance policies.

You need to have your homeowners insurance policy in place before you close — not after. Your mortgage lender will require proof of insurance as a condition of finalizing the loan. This proof is typically provided as a binder or declarations page, and without it, your closing can’t move forward.

Our recommendation is to start the insurance process at least two weeks before your closing date. That gives us time to compare quotes from multiple carriers, make sure the coverage fits your home and budget, and provide all the documentation your lender needs.

If you’re a first-time homebuyer, this part of the process can feel overwhelming on top of everything else you’re managing. That’s exactly what we’re here for. Visit any of our offices or give us a call, and we’ll walk you through the process in English or Spanish. We’ll explain what the policy covers, what your deductible means, and which coverages are essential versus optional.

Buying your first home is a major milestone. Make sure it’s protected the right way from day one.

The minimum amount of home insurance you need is whatever your mortgage lender requires, which is typically enough to cover the rebuild cost of your home’s structure. But the minimum isn’t always the same as adequate coverage, and there are several areas where homeowners are often underinsured.

There are three key things to consider.

First, the rebuild cost. As we’ve mentioned, rebuild costs in California are high and continue to rise. Make sure your dwelling coverage reflects what it would actually cost to rebuild your home today, not what you paid for it or its current market value.

Second, your personal property. Most standard homeowners policies cover your belongings up to a percentage of your dwelling coverage. However, high-value items such as jewelry, electronics, musical instruments, and collectibles often have coverage limits. If you own valuable items, ask us about scheduling them separately.

Third, liability coverage. The standard $100,000 in personal liability coverage included with many policies is often not enough in California, where lawsuit settlements can be significant. We typically recommend at least $300,000 in liability coverage and, for many homeowners, a personal umbrella policy for additional protection.

When we prepare your quote, we review all of these factors with you, not just the premium, so you can choose coverage that truly fits your needs.

Yes. A standard homeowners insurance policy covers fire damage, including damage caused by wildfires.

If a wildfire damages or destroys your home, your dwelling coverage pays to repair or rebuild the structure. Your personal property coverage helps replace belongings lost in the fire. Your loss of use coverage also helps pay for temporary living expenses if you need to stay somewhere else while your home is being repaired.

There are two important things to pay close attention to.

First, make sure your dwelling coverage limit is high enough to fully rebuild your home. After the recent Los Angeles wildfires, many homeowners discovered that their coverage limits had been set years earlier and no longer reflected current reconstruction costs. If your home is a total loss, any gap between your policy limit and the actual rebuilding cost could become your responsibility.

Second, if you live in a high-risk wildfire area and your insurer has chosen not to renew your policy, you may now be insured through the California FAIR Plan. While the FAIR Plan provides fire coverage, it does not include the full range of protections offered by a standard homeowners policy. If that’s your situation, talk to Strong Tie Insurance Services about adding a supplemental wrap-around policy for more complete coverage.

Yes. Unfortunately, this has become very common in California. Home insurance premiums across the state have increased significantly over the past two to three years due to wildfire losses, rising construction costs caused by inflation, and insurance companies reassessing their overall exposure in California.

There are several things you can do to help lower your premium.

The most effective step is to compare quotes from other carriers. As an independent agency, Strong Tie Insurance Services can compare rates from multiple insurance companies for your specific home and situation. In many cases, we’re able to find a more competitive premium, even in today’s market. Some carriers simply offer better pricing for certain neighborhoods or types of homes than others.

Beyond shopping the market, there are additional ways to reduce your premium. Bundling your home and auto insurance with the same carrier can often save 10–20% on both policies. Installing a monitored security or fire alarm system, replacing an older roof, and maintaining a claim-free history can also help lower your insurance costs.

If your current premium feels too high, let us review your options. We may not always find a lower price, but you’ll know you’ve explored every available option instead of wondering if you’re overpaying.

There are three major exclusions that often catch California homeowners by surprise.

First, earthquakes. A standard homeowners insurance policy does not cover earthquake damage. California sits on multiple active fault lines, so if an earthquake damages your foundation or causes your home to collapse, your regular policy won’t pay for those repairs. You need a separate earthquake insurance policy. Given where we live, it’s worth discussing whether this coverage makes sense for your home.

Second, floods. Standard homeowners insurance also excludes flood damage, including flooding caused by heavy rain, overflowing rivers, or storm surge. If your home is in a designated flood zone and you have a federally backed mortgage, you’ll typically need a separate flood insurance policy through the National Flood Insurance Program (NFIP). Even if it’s not required, flood coverage may still be worth considering if you live near a drainage channel or in a low-lying area.

Third, sewer backup. If a sewer or drain backs up into your home and damages your floors, walls, or personal belongings, a standard homeowners policy usually won’t cover the loss. Many insurance companies offer sewer backup coverage as an optional endorsement for a relatively small additional premium.

When we help you choose your homeowners insurance, we review these coverage gaps with you so you understand them before you ever need to file a claim.

Yes, though it may require a little more work to find the right carrier, and your premium may be higher than it would be for a newer home.

Older homes often have features that make some insurance companies more cautious, such as knob-and-tube wiring, galvanized plumbing, older roofs, and original construction materials that can be more expensive to repair or replace. Some carriers won’t insure homes with these characteristics, while others may require an inspection or documentation showing the condition of the home’s systems.

The good news is that updates can make a significant difference. If you’ve upgraded your electrical panel, replaced galvanized pipes with copper or PVC, or installed a new roof within the last 10 to 15 years, those improvements may qualify you for more carrier options and a lower premium.

Strong Tie Insurance Services works with homeowners throughout Southern California, including communities such as Downey, Bell, East Los Angeles, Gardena, Huntington Park, and many others where older homes are common. We know which carriers are the best fit for these situations and how to present your home’s profile to help you find the most competitive coverage available.

When something happens to your home, understanding the claims process can make a stressful situation much easier. Here’s how it typically works — and why having a local insurance agent can make a real difference.

The first call you should make is to us, not directly to the insurance company. We’ll help you understand what your policy covers in your specific situation before you file the claim. We’ll also guide you through documenting the damage with photos, repair estimates, and an inventory of damaged belongings, since good documentation can have a significant impact on how your claim is handled.

Once the claim is submitted, the insurance company assigns an adjuster to inspect the damage. The adjuster reviews the evidence, evaluates the loss, and makes a settlement offer based on your policy’s coverage and deductible. If you disagree with the assessment or believe the settlement offer is too low, you have the right to challenge it, and we can help you through that process.

One thing that surprises many homeowners is how long larger claims can take. Claims involving major fire or water damage may take several months to resolve completely. During that time, your loss of use coverage can help pay for temporary housing if your home is uninhabitable because of a covered loss.

Strong Tie Insurance Services has helped hundreds of homeowners throughout Southern California navigate the claims process. When something happens to your home, you don’t have to go through it alone.