Facts to Know about Wildfire Insurance in California

California is an amazing place to own a home, thanks to the state’s endless sunshine and beaches. However, if you own a property in California, you need to understand the Golden State’s serious wildfire risks. In 2021, for example, more than 2 million acres in California were ravaged by 8,835 wildfires. Hence, if you own property in California, carrying wildfire insurance should be a no-brainer. Read on to learn more.

Critical Insurance Coverages for Homeowners

Standard home insurance policies typically cover fire and smoke damage, including damage wrought by wildfires. Here are various insurance coverage types that will help cover the cost of replacing or repairing your home as well as your personal property:

  • Dwelling Coverage

    This coverage covers the cost of replacing or rebuilding your house’s physical structure as well as the structures attached to it, including garages, and decking, in case it’s damaged by a covered peril.

  • Personal Property Coverage

    This coverage covers the cost of replacing or repairing your personal items in case they’re damaged by a covered peril. It covers personal items in your home, like electronics, clothing, appliances, and furniture.

  • Other Structures Coverage

    This coverage covers the cost of replacing or rebuilding unattached structures, such as fencing, detached garages, pool houses, and sheds, on your property.

Coverage for Trees, Shrubs, Plants, and Lawns

Homeowners insurance policies usually cover items such as lawns, plants, shrubs, and trees up to a set percentage of the dwelling coverage.

Additional Living Expenses Coverage

Also called Loss-of-Use coverage, this coverage pays for your meals, hotel stay, as well as other expenses resulting from you being forced to live outside your home because it’s been rendered uninhabitable by a covered peril.

The State of Fire Insurance Coverage in California

Insurance companies set insurance rates based on the risk profile of the policyholder. Therefore, insurers can increase deductibles, cap payouts, charge higher premiums, or altogether deny you coverage if your home is in a high-risk area.

The risk of wildfires is higher in some parts of California, including Napa County, Yolo County, Riverside County, and Los Angeles. Wildfire insurance costs are generally higher than average in wildfire-prone areas.

Does Homeowners Insurance Cover Wildfire in California?

The standard home insurance policies usually cover smoke and fire damage. However, if your property is in a wildfire-prone area, the coverage offered by your home policy may be insufficient. Therefore, you should consider getting additional wildlife insurance to adequately protect your home.

What Does Wildfire Insurance Coverage Provide?

Wildfire insurance policies usually provide an extra layer of protection for homeowners whose property is in high-risk locations. Your wildfire insurance can provide additional protection by paying for the following:

  • The cost of upgrading your property to meet the current building codes.
  • The cost of fixing wildfire damage to your property’s main dwelling.
  • The cost of replacing or rebuilding detached structures in your property life sheds, detached garages, and barns.
  • The cost of replacing your personal items.
  • Your living expenses if you’re forced out of your property due to a wildfire event.
  • The cost of removing rubble after a wildfire event.

Is Wildfire Insurance Expensive?

Due to California’s growing wildfire risks, the cost of wildfire insurance may be significantly high. However, you can use some strategies to lower your insurance costs, including comparison shopping and consulting with an independent insurance agent who understands the insurance carriers in your area.

Get the Right Wildfire Insurance Policy at CF&P Insurance Brokers

Wildfires can cause catastrophic damages, and hence, it’s important to get the right wildfire insurance coverage to protect your finances. At CF&P Insurance Brokers, we will help you find wildlife insurance that suits your budget and insurance needs. Contact us today to get a customized quote.

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