What Is Homeowners Insurance California?

Homeowner insurance in California is a type of insurance that covers homeowners against losses that could arise during their policy period. Homeowners insurance provides coverage to the insured and anyone that is living under the insured roof. We all know that it is impossible to surely eliminate the risk of unforeseeable risk of damages to one’s home. However, every homeowner could reduce the risk of financial loss when a loss happens through a homeowner’s insurance policy. Homeowners’ policy could cover the homeowners against dwelling damages that are due to specific named perils only. These named perils can be seen on the policyholder’s declaration page.



The deductible rate in insurance is what the insured agreed to pay out his pocket before the insurance kicks in. The insurance company will only pay the rest of the claims if the insured started to pay its deductible rate. However, every homeowner should be careful about choosing a deductible rate. Homeowners should choose a deductible rate that he would be able to pay once a loss happens, and not a rate that could put him into a financial loss. Homeowners could choose a deductible rate that ranges from $500, $1,000, $2,000 and up to $5,000 maximum

Coverage Of Homeowners Insurance

This coverage pays for the repair of the insureds dwelling if the damages are due to named perils only. This could be covered if the damages are due to fire, hailstorm, smoke, vandalism and other named perils only.

Exclusions of Coverage

  • Damages due to flood
  • Damages due to earthquake disaster
  • Intentional damages, such as intentionally causing a fire to the house

Eligibility Of Dwelling

  • The house is used for residential purposes only.
  • Contains 1 up to 4 apartments only
  • The structure of the building is a townhouse or a rowhouse alike

How Does Claim-Payments Work?

  • Suppose that the dwelling limit of the insured is $500,000 and,
  • The insured purchased a $5,000 deductible
  • Fire causes damage that costs $30,000
  • The claim payment would be $25,000 (cost of covered losses, minus the deductible rate of the insured, and up the insured’s dwelling limit)
Take note: Insurance companies do not provide payments to the insured if the cost of covered damages does not exceed the deductible rate of the insured.

This would cover the cost of damages to the other structures of the insured, such as a detached garage, fences, and gazebo. However, coverage will only be applicable if the damage is due to named perils only.

This covers the personal property of the insured as well as its listed people against named perils and theft. However, coverage to the personal property of the insured such as jewelry, watches and other specific personal belongings, has a dollar limit only.

Personal Property Eligibility

  • The personal property is not used for business
  • If the property is at another location but used in connection with the location of the insured. (but not for business purposes)

This coverage pays for the extra living expenses of the insured if the insured’s house is uninhabitable owing to a covered cause of damages. This would pay for the insured’s food, clothes, toiletries and payment for the rented house or hotel. However, this coverage would only be applicable until the house of the insured is able to be live in again. Coverage if the insured decides to permanently live with the other locations won’t be applicable.

Bodily Injury

This coverage covers the insured against liability claims that were filed by a third party person due to bodily injury. This would settle the lawful obligation of the insured and its obligation to pay for the injury of the third party person. However, coverage would only be applicable up to the insureds liability coverage limits. For further illustration, considering that the insured invited a guest to their house because they are hosting a party. One of the insured’s guests accidentally slips on the wet floor in their kitchen and caused the guest a dislocated kneecap. The mother of the guest files a legal claim against the insured. Moreover, she even demands the insured to pay for the cost of treatment of the injured guest. This type of bodily injury liability of the insured would be covered but with specific limits.

Property Damage

This coverage covers the liability of the insured to a third party person if the insured is held legally liable for someone’s property damages. For further illustration, suppose that the family of the insured went to a park. The son of the insured throws a ball and hits the window of the house near the park. The owner of the house demands for the replacement of the window. Insurance providers could give payment for this kind of liability of the insured.

Covered Cause Of Damages

  • Fire
  • Theft
  • Smoke
  • Vehicles
  • Volcanic eruptions
  • Freezing
  • Vandalism
  • explosions
  • Damages due to the weight of ice
  • windstorm/hail
  • Accidental discharge or overflow of plumbing or air conditioning