Not all California homeowner insurance policies are created equal. You need to check to see what type of dwelling coverage you have. In the event of a total loss you may either have extended replacement cost or actual cash value. Extended replacement cost refers to a percentage of the coverage you are entitled to above the actual policy limits. This can range from 20% to 100% above the policy coverage. This varies from company to company. But if you do not maintain proper limits this extension may be void.
The right way to insure your home is to make sure you have the correct dwelling coverage, enough to rebuild your home in the event of a total loss. If cost is a factor, take a higher deductible. Don’t worry about the small claims. This could save you 10%-25% in your premiums.
Wildfire season in California is right around the corner. Check with your agent to see if your California homeowner insurance policy has the right limits and find out what type of claim settlement you can expect.