Owning a home in California comes with unique challenges, especially when it comes to insurance. With rising premiums, policy restrictions, and wildfire risks, securing the right homeowners insurance requires careful attention. However, many homeowners make avoidable mistakes that leave them underinsured or paying more than necessary.

To help you protect your home and finances, here are the top five mistakes California homeowners make with their insurance policies—and how to avoid them.

1. Underinsuring Their Home

Many homeowners choose coverage based on their home’s market value rather than the actual cost to rebuild. With California’s rising construction costs and inflation, this can leave you underinsured in the event of a total loss.

✅ How to Avoid It:

• Ensure your policy covers the full cost to rebuild, not just the home’s purchase price.

• Ask your insurer about extended replacement cost coverage to account for unexpected cost increases.

2. Not Understanding Wildfire Risk and Coverage Gaps

Wildfires have become a major issue in California, yet many homeowners don’t realize that their policies may not fully cover fire damage or additional living expenses if they’re displaced.

✅ How to Avoid It:

• Verify your fire coverage—some policies may exclude or limit wildfire protection.

• Consider the California FAIR Plan as a backup if you live in a high-risk area.

• Invest in fire mitigation upgrades to qualify for better rates.

3. Overlooking Policy Exclusions

Standard homeowners insurance policies don’t cover everything. Many homeowners assume they’re protected against floods, earthquakes, and landslides—only to find out too late that they’re not.

✅ How to Avoid It:

• Review your policy exclusions carefully.

• Purchase separate flood and earthquake insurance if you live in an at-risk area.

• Ask about endorsements or riders for additional coverage.

4. Not Updating Their Policy After Renovations

Upgrading your home can increase its value, but if you don’t update your policy, you could be underinsured in the event of a claim. Many homeowners forget to notify their insurance provider after remodeling or adding new structures.

✅ How to Avoid It:

• Notify your insurer before starting major renovations.

• Reassess your coverage after kitchen remodels, home additions, or new outdoor structures.

• Consider higher dwelling coverage to reflect your home’s new value.

5. Choosing the Cheapest Policy Without Considering Coverage

While saving money is important, the cheapest policy isn’t always the best. Many budget policies have high deductibles, limited coverage, or exclusions that could cost you more in the long run.

✅ How to Avoid It:

• Compare policies based on coverage, not just price.

• Work with an independent agent like Dana Brown to find the best balance of affordability and protection.

• Read the fine print to avoid surprise costs when you file a claim.

Protect Your Home with the Right Coverage – Contact Dana Brown Today!

Avoiding these common mistakes can save you thousands and ensure that your home is properly protected. But navigating California’s complex insurance market can be overwhelming.

That’s where Dana Brown comes in. As an experienced insurance professional, Dana can help you understand your policy, find gaps in coverage, and secure the best protection for your home.

📞 Call Dana Brown today to review your policy and ensure you're fully covered!