What is the SRCA Project Phoenix doing about Zone Zero and insurance requirements?
Statutes and Regulations
Maps and Web Camera Links
Articles, Reports, Videos and Media Links
Insurance Topics
“Shout out to Bob Ilko and the team of board and community members from our Scripps Ranch Civic Association who conducted a 2 hour session on the Zone Zero defensible space legislation that has been passed in our state. We learned a lot and will be better prepared and safer thanks to the info. I highly recommend that you either attend a session or speak to someone who has. We are fortunate to live in a great community that looks out for one another. Here’s a link to the SRCA post to sign up.” DeAnne Steele (10/25/24)
The SRCA is hosting AB 3074 Zone Zero and Insurance Issues presentations. If you want to attend please click on the following link: https://forms.gle/
Since the 2003 Cedar Fire, homeowners insurance in Scripps Ranch has been a challenge and that is an understatement! As part of the Cedar Fire recovery effort Project Phoenix, the fire recovery has naturally evolved into assisting homeowners retain or acquire homeowners insurance policies. Due to many factors insurance companies are either not renewing policies or writing new policies. This has come a boiling point in 2022 and continues through today with potential improvement in the next two to three years. Since 2012, the State of California has passed legislation effecting the ability to have homeowners insurance. Two pieces of legislation AB 38 (California Civil Code 1102.19(a)) and AB 3074 are requiring real property owners in the Very High Fire Hazard Severity Zone (VHFHSZ) to comply with disclosures and physical changes to your property. 98% of Scripps Ranch is in the Very High Fire Hazard Severity Zone. AB 38 pertains to sale/purchase disclosures and AB 3074 is new defensible space called Zone Zero.
The purpose of the Project Phoenix webpage is to provide you background, history and resources so that you can be well informed to make decisions about homeowners insurance.
What is the SRCA Project Phoenix doing about Zone Zero and insurance requirements?
We will:
- Continue monitoring changes by the State of California Department of Insurance, Department of Forestry and Fire Protection (CalFire), and City of San Diego
- Work with Scripps Ranch Planning Group, Miramar Ranch North Planning Committee, Scripps Ranch Fire Safe Council, individual homeowners associations, individual property owners, San Diego Fire Rescue Department, City of San Diego Park Department, Department of Forestry and Fire Protection (CalFire), Office of State Fire Marshal, Department of Insurance, University of CA – South Coast Research and Extension Center, Master Gardeners of San Diego, State Assembly Marie Waldron, State Senator Brian Jones, and San Diego Association of Realtors
- Educate the community about implementation of Zone Zero and how to adapt to the regulations and/or insurance requirements. We have hosted four Zone Zero presentations as of May 2024. Next scheduled presentation June 20, 2024.
- Advocate for insurance issue resolutions, reforms, and competition
- Apply for Firewise Community approval in conjunction with Scripps Ranch Fire Safe Council
- Recommend IBHS Wildfire Prepared Home Base Designation or Wildfire Prepared Home Plus Designation certification
- Create a preferred vendor-contractor list for residents
- Pursue second fire station in 92131 – Station 37A
- The SRCA is the only town council in the County of San Diego with dedicated email for homeowners insurance and webpage regarding homeowners insurance. If you have questions, concerns or solutions please email us at [email protected]
*Disclaimer – Any and all Information provided is subject to change without notice
The State of CA Assembly Bill AB 3074 and many insurance companies will require compliance with new Zone Zero defensible space. Any home or business building in the SDFD Very High Fire Severity Zone will be required. 98% of SR is in the Very High Fire Severity Zone. The Scripps Ranch Civic Association’s Project Phoenix is hosting presentations on the issues at the SRCA Community Center located at 11885 Cypress Canyon Road or by Zoom. Please fill out this form to RSVP as we are limited to 64 seats at each presentation to attend. Advance registration is required and one RSVP per person.
For questions or concerns, please email us at [email protected]. Time to learn about changes is now!
Statutes and Regulations:
2025 State of CA Legislative Measures regarding wildfire protections:
AB 888 (Assembly Member Lisa Calderon) The California Safe Homes Act: Protects homes and access to insurance by establishing a new grant program within the Department of Insurance to support qualifying residents in obtaining new or replacement fire-safe roofs and creating fire-safe mitigation actions within 5 feet of the structure and to be included in communitywide safety programs, covering part or all of the costs.
SB 429 (Senator Dave Cortese) The California Wildfire Public Catastrophe Model Act: Strengthens community safety and education, allowing the Department of Insurance to issue grants to establish the nation’s first publicly available source of wildfire loss data. The bill builds on recommendations from Commissioner Lara’s Cal Poly Humboldt-led Public Wildfire Model Strategy Group.
SB 547 (Senators Sasha Renée Pérez and Susan Rubio) The Business Insurance Protection Act: Expands the current residential property insurance moratorium law created by then-Senator Ricardo Lara in 2018 to commercial property insurance, protecting businesses, HOAs, condos, affordable housing units, small businesses, and non-profits, among other businesses, from being non-renewed or cancelled from their commercial property insurer for one-year following a gubernatorial emergency declaration.
SB 616 (Senators Susan Rubio, Dave Cortese, and Henry Stern) The California Community Fire Hardening Commission Act: Establishes an independent statewide commission chaired by the Insurance Commissioner that will make recommendations to increase the speed and scale of home and community hardening throughout our state as well as to create a stronger statewide inspection system that helps individuals achieve home- and community-hardening insurance discounts and improve wildfire safety for entire communities.
SB 495 (Senator Ben Allen) Eliminate “The List” Act: Reduces red tape and increases payouts to wildfire survivors by requiring insurers to cover 60% of contents coverage limits, with a cap of $350,000, without a detailed inventory. The bill also gives policyholders 100 days to submit proof of loss with potential three-month extensions, and requires insurance companies to provide the Department of Insurance with annual reinsurance and catastrophic model data to assist with the regulation of insurance rates.
AB 1 (Assembly Member Damon Connolly) The Insurance and Wildfire Safety Act: Enhances insurance discounts by requiring the Department of Insurance to regularly review the Department’s groundbreaking Safer from Wildfires regulations for updates reflecting advances in science, safety, and mitigation.
AB 226 (Assembly Members Lisa Calderon and David Alvarez) The FAIR Plan Sustainability Act: Provides additional financial stability to the FAIR Plan by allowing it to access catastrophe bonds and a line of credit, if certain terms are met and the Insurance Commissioner grants the authority to do so.
Expanding Health Protections
AB 843 (Assembly Member Robert Garcia) Strengthening Language Access in Health Care: Modernizes current state language access laws to align with the federal Affordable Care Act section 1557 language access regulations by requiring health insurers and health care service plans to take reasonable steps to provide meaningful access to individuals with limited English proficiency.
AB 594 (Assembly Member José Luis Solache) Increasing Consumer Protections in Student Health Insurance: Allows people who are no longer enrolled as students at a university to withdraw from their student health insurance coverage and cease paying premiums, makes changes regarding notices that must be given to schools and students when an insurer wants to increase rates, and institutes a penalty when insurers fail to timely file their rate changes with the Department of Insurance.
AB 554 (Assembly Member Mark González) Reducing Barriers to HIV Prevention: Prohibits health insurers and health care service plans from imposing any patient cost-sharing or utilization review requirements for antiretroviral drugs, drug devices, or drug products for the prevention of HIV, commonly referred to as PrEP.
The Governor now has until midnight on Monday, October 13 to act on these and all other measures in his possession.
AB 38 Statue: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB38
AB 38 – DEFENSIBLE SPACE INSPECTIONS
As of July 1, 2021, California Assembly Bill 38 states that the seller of a residential property located in a Very High Fire Hazard Severity Zone (VHFHSZ) by Cal Fire and SDFD must submit documentation of compliance with locally adopted defensible space requirements prior to the close of escrow. With AB 38, if documentation showing compliance cannot be obtained by the close of escrow, the seller and buyer can enter into a written agreement showing that the buyer agrees to obtain documentation of compliance within one year of closing escrow.
As of July 1, 2025, require the disclosure notice to also include the State Fire Marshal’s list of low-cost retrofits. The bill would also require a seller who has obtained a specified final inspection report to provide to the buyer a copy of that report or information on where a copy may be obtained. As of May 3, 2024, there is no response from State Fire Marshall to SRCA request for the list of low-cost retrofits.
With AB 38, if documentation showing compliance cannot be obtained by the close of escrow, the seller and buyer can enter into a written agreement showing that the buyer agrees to obtain documentation of compliance within one year of closing escrow.
AB 3074 Statute: https://pluralpolicy.com/app/legislative-tracking/bill/details/state-ca-20192020-ab3074/456758
Establishes an “ember-resistant zone” within five feet of a structure located Very High Fire Hazard Severity Zones (VHFHSZ), that considers the elimination of vegetation and non-organic fuel materials that would likely be ignited by embers (ie Zone 0) effective 01/01/21.
Exactly what that means for the homeowner will continue to depend in part on the property. It doesn’t necessarily mean one has to pour a circle of cement! The law was drafted that the modification should take into account the flammability of the structure as affected by building material, building standards, location, and type of vegetation. Fuels shall be maintained in a condition so that a wildfire burning under average weather conditions would be unlikely to ignite the structure.
As before, violation of these provisions will be considered a crime, though the law mentions that such enforcement should be pursued only as a last resort. The law requires SDFD to provide reasonable notice before enforcement. When and how notice will be given to be determined. Insurance companies are beginning to require AB 3074 compliance in advance of the state regulation being implemented.
AB 3074 would require, on or before January 1, 2023, the state board, in consultation with the Department of Forestry and Fire Protection, to update the guidance document to include suggestions for creating an ember-resistant zone within 5 feet of a structure.
In writing July 28, 2023, Raquel Elias, Code Compliance Supervisor, City of San Diego Fire-Rescue Department Community Risk Reduction Division Wildland Management & Enforcement Section stated the implementation is for only new construction at this time.
As of March 7, 2024, the guidance document is undergoing administrative review. Expected release is early 2024 per Department of Forestry and Fire Protection and Fire Protection – Thomas Shoots, Fire Captain-Community Risk Reduction. AB 3074 should apply to new construction in 2025 and existing structures 2026.
Note: Should apply to Renzulli Estate Development pending development approval and very possibly Sudberry Development The Watermark issuance of the pending building permit approval.
SB 63 Statute
Fire prevention: vegetation management: public education: grants: defensible space: fire hazard severity zones effective 01/01/2021: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB63
SB 63 among other things, would instead provide that fuel modification beyond the property line may only be required by state law, local ordinance, rule, or regulation in order to maintain the 100 feet of defensible space. AB 3074 allows insurance companies to require beyond property line “if a fire expert, designated by the fire chief… provides findings that the fuel modification is necessary to significantly reduce the risk of transmission of flame or heat sufficient to ignite the structure, and there is no other feasible mitigation measure possible to reduce the risk of ignition or spread of wildfire to the structure. The greater distance may not be beyond the property line unless allowed by state law, local ordinance, rule, or regulation.”
SB 504 Statute
Wildfires: defensible space: grant programs: local governments as amended 07/31/24: https://legiscan.com/CA/bill/SB504/2023
Requires existing and new structures to meet the standards for the ember-resistant zone and requires regulations to allow the staging of work for existing structures to support implementation of the ember-resistant zone and address the costs of compliance.
This bill would instead, without reference to weather conditions*, require fuels to be maintained and spaced in a condition so that a wildfire would be unlikely to ignite the structure. The bill would authorize regulations to alter the fuel reduction required between 5 and 30 feet to integrate the ember-resistant zone and would provide that the requirement for the ember-resistant zone shall instead take effect for existing structures 3 years after the effective date for new structures.
Maps and Web Camera Links:
City of San Diego Very High Fire Severity Zone Map, FAQ and State Code Mandate: https://www.sandiego.gov/
City of San Diego Brush Management Regulations (San Diego Municipal Code SDMC 142.0412): https://www.
City of San Diego Maintenance Assessment District – Scripps Miramar Ranch: https://www.
City of San Diego Mainenance Assessment District – Miramar Ranch North: https://www.
City of San Diego Maintenance Assessment District – Rancho Encantata – Stonebridge Estates: https://www.
Scripps Ranch Evacuation Map: https://www.
ALERTCalifornia cameras can be viewed by the public 24 hours a day at http://www.ALERTCalifornia.
High Performance Wireless Research and Education Network Cameras (HPWREN) https://www.hpwren.ucsd.edu/
Articles, Reports, Videos and Media Links:
Contra Costa Bar Association article regarding possible non-compliance penalties and legal consequences under AB3074: https://www.cccba.
Fire Ember Production from Wildland and Structural Fuels Final Report (2019) by www.FireScience.org: https://
Pathways for Building Fire Spread at the Wildland Urban Interface by The Fire Protection Resource Foundation (2015): https://www.nfpa.org/
Safer from Wildfires https://www.
Wildfire Prepared Home Certification – A Program of IBHS https://
City of San Diego Fire Rescue AB 38 Defensible Space Inspection (DSI) compliance for selling a home https://www.sandiego.gov/
State Farm 20% rate increase article 12/27/23 https://share.
CAL FIRE incidents and updates are available at http://www.fire.ca.gov/
Sonoma Fire District Zone Zero Explainer Video: https://youtu.be/
Hartford not writing new policies 01/24/24 https://share.
American National leaving California 03/09/24 https://
Fox News re State Farm crisis 03/24/24 https://www.
Insurance Commissioner response to State Farm not renewing 72,000 policies https://share.
HARVEY ROSENFIELD op ed Sept 2023 Prop 103 – https://www.latimes.com/
Dept of Ins Sustainable Insurance Strategy (2024) https://www.insurance.
The Malibu Times March 23, 2023 Beginning in 2024, no flammable materials allowed 5 feet of any structure • The Malibu Times
Corelogic September 18, 2023 Wildfire Mitigation Is a Risk Management Strategy That Begins at Ground Zero
Ramona Sentinel January 16, 2024 article regarding ALERTCalifornia webcamera technology One of Time magazine’s Best Inventions of 2023 has Ramona origins
SRCA Project Phoenix 20th Anniversary of Cedar Fire Presentation (10/26/23): https://www.scrippsranch.org/wp-content/uploads/2024/05/SRCA-SRFSC-20th-Anniversary-Cedar-Fire-v2.pdf
State of California Senator Brian Jones letter to California Insurance Commissioner dated August 2023: https://www.scrippsranch.org/wp-content/uploads/2024/05/State-Senator-Jones-Letter-to-Insurance-Commissioner-August-2023.pdf
National Fire Protection Association Wildland Urban Interface Report: https://www.nfpa.org/
KTLA article April 27, 2024 “Allstate says it will insure California homes again, under one condition” https://www.
Another insurance company plans to raise rates in California (Allstate) May 9, 2024 https://ktla.com/news/local-news/another-insurance-company-plans-to-raise-rates-in-california/?utm_source=facebook.com&utm_campaign=socialflow&utm_medium=referral&fbclid=IwZXh0bgNhZW0CMTAAAR3_N2O8qHZxOHCbfzqRCn6CRpIoJmSM1BobAX8oOzECxehV079htdguG6k_aem_AcPJfQC7OqwgllfzfYXWtFlKJSe7Ahhp1x0y2JTTBjosnkPW4PEsU2VRwPTH3Q-4scixCXjASbADZn8NfYeB28k2
Two insurance firms agree to collaborate to write California home policies May 10, 2024 https://www.northbaybusinessjournal.com/article/industrynews/california-insurance-fire-home-sonoma/
County District Attorney sues Farmers Insurance regarding underinsurance (May 2024) https://share.newsbreak.com/73p7owu1
State Farm will begin writing homeowners policies after July 3rd however not for fire coverage (06/06/24) https://www.foxla.com/news/state-farm-some-californians-can-keep-home-insurance-something-major-wont-covered
City of South Lake Tahoe adopts Ab 3074 before CalFire guidance https://southtahoenow.com/story/06/24/2024/south-lake-tahoe-sets-aggressive-defensible-space-guidelines-new-ordinance
As California wildfires rage, one Bay Area insurer uses AI for coverage article (07/26/24): https://www.siliconvalley.com/2024/07/26/as-california-fires-rage-one-insurer-uses-ai-for-coverage/amp/
California home insurance program accused of selling policies with subpar fire coverage and files lawsuit (07/26/24): https://share.newsbreak.com/7wr57347
Residential Insurance: Homeowners and Renters Guide from California Department of Insurance: https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/upload/IG-Residential-Insurance-Homeowners-and-renters-Updated-052124.pdf
Burned out and underinsured – A look at why California homes are underinsured and the litigation that arises out of that underinsurance by Charles Miller (2019 September)
https://www.advocatemagazine.com/article/2019-september/burned-out-and-underinsured
Catastrophe modeling proposal would reshape California’s home insurance (March 21, 2024): https://www.
The Home Insurance Crunch: See What’s Happening in Your State by Christopher Flavelle and Mira Rojanasakul (May 13, 2024): https://www.nytimes.
The Importance of Proper Home Insurance Coverage re 80-20 Rule Underinsurance (April 11, 2023): https://www.
Ceded Reinsurance Leverage: What It is, How it Works by Julia Kagan (May 26, 2022): https://www.
2023 California Property & Casualty Market Share showing premiums paid and losses (Admitted Carriers): 2023 CA Property & Casualty Market Share
USAA to hike insurance rates by double-digits for 265,000 homeowners (10/30/24) https://share.newsbreak.com/
IBHS Certification may get you an insurance discount (10/29/24) https://fox5sandiego.com/
How will Malibu wildfire affect California homeowners insurance? (12/13/24) http://www.housingwire.com/articles/how-will-malibu-wildfire-affect-california-insurance/
Department of Insurance – FINAL STATEMENT OF REASONS – CATASTROPHE MODELING AND RATEMAKING
Department of Insurance – Final Text of Catastrophe Modeling and Ratemaking regulation
Insurers Fled California in Recent Years—Experts Say Their Return Depends On Homeowners (03/04/25) http://www.investopedia.com/insurers-fled-california-in-recent-years-experts-say-their-return-depends-on-homeowners-wildfires-8778866
Top San Diego ZIP codes with most homes at risk for wildfire – New analytics reveal the San Diego ZIP codes with the most homes at high fire risk, and what’s driving your insurance costs up.
CBS8 Brian White Updated: 5:44 PM PDT September 15, 2025
https://www.cbs8.com/article/
Audoboun Society Zone Zero Explainer Presentation (07/30/25): https://www.
Viewpoint: Delay, Deny, Defend for California Wildfire Claims? Veroff and Chaiken (September 2, 2025) – https://www.insurancejournal.com/news/west/2025/09/02/837381.htm
Agent Has No Duty to Tell Insured of Pending Nonrenewal (except when Broker agrees to assist the Insurer): Connecticut High Court Andrew G. Simpson (September 9, 2025) – https://www.insurancejournal.com/news/east/2025/09/09/838430.htm
US P/C Insurance Industry First-Half Underwriting Profit Triples (September 4, 2025) – https://www.insurancejournal.com/news/national/2025/09/04/837812.htm (Net income gain after record net income loss due to CA fires)
IBHS Home Plus Designation mew housing development in San Diego that complies with zone zero – https://www.youtube.com/watch?v=7HjmlHYRlyQ
IBHS Research regarding Hydrated Plants in Zone Zero video – https://www.youtube.com/watch?v=Ykf9K-tnXC0
California FAIR Plan seeks huge rate hike. Map shows which ZIPs hit hardest by Megan Fan Munce (10/03/25). 1 policy in 92131 43% increase $1474. First rate increase since approval of reinsurance premium reimbursement and catastrophic loss rate modeling. https://www.sfchronicle.com/california-wildfires/article/fair-plan-insurance-rate-21081370.php
IBHS Research on 2025 LA County Wildfires Early Insights (01/16/25) https://ibhs.org/wp-content/uploads/2025-LAFires-EarlyInsights-FINAL.pdf
SRCA Zone Zero – IBHS The Return of Conflagration in our Built Environment Report 2023
IBHS The Return of Conflagration in our Built Environment Study (September 2023) by Ian M. Giammanco, PhD, Faraz Hedayati, PhD, Steve R. Hawks, Xareni Sanchez Monroy, PhD, & Evan Sluder – Many of the most catastrophic wildfires in United States history share a common thread: fire spread from the wildlands into the WUI and suburban environment. This study focused on the concept of a built environment conflagration resulting from wildfires, where fire spreads uncontrollably from structure-to-structure. Most recently, the Lahaina Fire on the island of Maui, Hawaii and the Marshall Fire in Colorado demonstrated the chilling impact of a wildfire-induced conflagration in the built environment. The study also included data from the 2007 Witch Fire. Those fires spread from arid grasslands into a community environment and in both cases over 1,000 structures were lost in just twelve hours. DOWNLOAD PDF
Insurance Topics:
What is Reinsurance?
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself from the risk of a major claims event. With reinsurance, the company passes on some part of its own insurance liabilities to the other insurance company. Reinsurance allows insurers to remain solvent by recovering all or part of a payout. Companies that seek reinsurance are called ceding companies. Types of reinsurance include facultative, proportional, and non-proportional. https://www.investopedia.com/terms/r/reinsurance.asp
Enclosed Eaves: Complete Guide March 10, 2023 https://ameriside.com/enclosed-eaves-soffit-and-fascia-complete-guide/#:~:text=Boxed%2Din%20eaves%3A%20This%20design,the%20roof%20or%20eave%20space
What is the “Fair Plan” – California Fair Plan Property Insurance Association: https://www.cfpnet.com/
The California FAIR Plan Association was established to meet the needs of California homeowners unable to find insurance in the traditional marketplace. The FAIR Plan is not a state agency, nor is it a public entity. There is no public or taxpayer funding.
The FAIR Plan is a syndicated fire insurance pool comprised of all insurers licensed to conduct property/casualty business in California. The FAIR Plan was established by statute (California Insurance Code sections 10091 et seq.) in August 1968 as an insurance placement facility.
All licensed property/casualty insurers which write basic property insurance required by Insurance Code sections 10091(a) and 10095(a) are members of the FAIR Plan. The FAIR Plan issues policies on behalf of its member companies. Each member company participates in the profits, losses and expenses of the Plan in direct proportion to its market share of business written in the state.
The FAIR Plan has not been rated or evaluated by A.M. Best.
The FAIR Plan is a temporary safety net
In the last decade, more Californians have turned to the FAIR Plan as wildfires have devastated California and some insurers have pulled back from these markets. While they will support homeowners regardless of a property’s fire risk, unlike traditional insurers, our goal is attrition. For most homeowners, the FAIR Plan is a temporary safety net – here to support them until coverage offered by a traditional carrier becomes available.
Mailing Address
P.O. Box 76924
Los Angeles, CA 90076
Office Hours
Monday through Friday
8:30 a.m. – 4:00 p.m.
Phone Numbers
Main number: (800) 339-4099
Secondary: (213) 487-0111
California Contractors Licensing Board – https://cslb.ca.gov/
Guides and Publications for Hiring a Contractor – https://cslb.ca.gov/About_Us/Library/Guides_And_Publications/
Use the link above before you hire a contactor:
– Ten Tips for Making Sure Your Contractor Measures Up
– Checklist for Prescreening Contractors
– What You Should Know Before Hiring a Contractor
– Choosing the Right Landscaper Guide
Admitted vs Non-Admitted Insurance Policies:
Admitted insurance companies are licensed by the state and must comply with state regulations, including policy forms, rates, and requirements. They also have access to state guaranty funds, which provides a level of financial security and regulatory oversight for policyholders. Admitted products may be more affordable, but they may not include certain protections or exclude certain people based on eligibility.
Non-admitted insurance companies are not licensed or regulated by the state and are also known as “surplus lines” or “excess and surplus” (E&S) insurance. They may not comply with state regulations and are not backed by the state financially. If the company becomes insolvent, policyholders may not be covered. However, non-admitted companies can offer more flexibility and may insure risks that admitted insurers typically avoid. They can also set their own rates and provide more extensive coverage, which can be important for high-risk zones like areas prone to wildfires, hurricanes, or earthquakes.
A.M. Best Ratings:
Regardless of whether an insurance company is admitted or non-admitted, they’re rated by the company A.M. Best (https://web.ambest.com/home). This company gives them a letter grade ranging from A++ to F. This can help you better determine which companies are reliable insurance carriers. In general, you’ll want to choose a company with a higher letter grade.
Named Perils Insurance Coverage vs. Open Perils Coverage?
Insurance policies cover you in the event of “perils” — specific circumstances that may cause damage or loss to the things you own, like your home or belongings. Coverage for “open perils” means you’re potentially covered in the event of any peril unless that peril has been excluded from your policy. Coverage for “named perils” means you’re only protected against the perils specifically listed in your policy.
Coverage for named perils — and the similar term of “specified peril” coverage — means that the policy may cover damage or loss from all potential perils unless specifically excluded in that insurance policy. Typically, California Fair Plan insurance coverage.
The following policies have named perils coverage for your home’s structure:
Basic form (HO-1): This is the most restrictive policy, with the least number of named perils. It offers named perils coverage for both your home and belongings. These policies are less common and harder to find.
Broad form (HO-2): This policy covers more perils, but still offers less coverage than an open perils policy. Like an HO-1 policy, it provides named perils coverage for your home and personal property.
Modified coverage form (HO-8): Similar to an HO-1 policy, an HO-8 offers bare-bones coverage and is designed for owners of older homes who may not be able to get standard home insurance. It offers named perils coverage for your home and its contents.
What is “open perils” coverage?
Coverage for “open perils”— and similar terms such as “all perils,” “all risk,” or “special perils,” coverage — means that damage or loss from all potential perils may be covered unless specifically excluded in the insurance policy.
Flooding is an example of a peril generally excluded from coverage. For this and other exclusions, you may be able to add riders or purchase separate policies such as flood insurance to insure your home against damage from excluded perils. Learn more about covered perils.
The following homeowners insurance policies have open perils coverage:
Special form (HO-3): This is the most common home insurance policy. It offers open perils coverage for your home and named perils coverage for your personal property.
Comprehensive form (HO-5): This policy offers the highest level of coverage you can get, with open perils coverage for both your home and your personal belongings.
Mobile home form (HO-7): This coverage offers open perils coverage for your mobile home and named perils coverage for your home’s contents.
Choosing “named perils” vs. open peril coverage
An open peril version of any policy coverage will likely be more expensive than the “named-peril” version of the same policy coverage. An open peril policy provides broader coverage than the “named peril” policy.
Additional coverages for non-covered perils
Even the most extensive open perils policy will still have perils it doesn’t cover. The most common exclusions you may need coverage for are earthquakes and floods.
Earthquake insurance
You may want to consider purchasing earthquake insurance, even if you don’t live in a high-risk area. The United States Geological Survey estimates the annual cost of earthquakes in the U.S. is $6.1 billion. You can purchase earthquake insurance as a separate policy or as a rider on your current home insurance policy.
Flood insurance
Your mortgage lender will require flood insurance if you live somewhere that FEMA designates as a high-risk flooding area. Even if you’re not required to get flood insurance, it’s a good idea to review the flood map for your community and find out your risk level.
Other exclusions that you can cover through riders on your insurance policy:
Water backup coverage: This covers water damage that a backed-up drain or sump pump causes.
Scheduled personal property coverage: Even if you have personal property coverage, your limits may not provide enough reimbursement for high-value belongings. A scheduled personal property rider can increase your coverage for valuable items like antiques or an engagement ring.
Business property coverage: If you run a business out of your home, this can be a vital coverage. It protects business property that you store in your home, like inventory.
Condominium Insurance:
HO6 insurance policy is a type of homeowners insurance for people who own a condominium or co-op unit. It protects your unit and its contents, as well as your liability and loss of use.
HO6 insurance typically covers:
Building property: The unit itself, as well as any attached structures like walls and fixtures. It can also cover renovations made after you purchased the condo.
Personal property: Furniture, electronics, and other movable items inside the unit.
Liability: You are covered if someone slips and falls in your unit.
Additional living expenses: Covers you if you can’t stay in your unit due to a covered incident.
HO6 insurance generally doesn’t cover common areas of the complex, like hallways, sidewalks, and parking lots. The condo or co-op association is usually responsible for insuring those areas. HO6 insurance also doesn’t cover losses caused by things like:
Floods
Ground movement, like earthquakes, landslides, and sinkholes
Wear and tear
Pest infestations
Nuclear hazards
Government action
Insurance Rider:
An insurance rider, also known as an endorsement or amendment, is an add-on to an existing insurance policy that can change the terms of the original contract. Riders can be used to add, delete, exclude, or change coverage, or to increase standard limits. They can also take precedence over the original policy agreement. Riders can be added at the time of purchase, during the policy term, or at renewal time. They usually come at an additional cost and may affect insurance premiums.
Riders can be added to a variety of policies, including homeowners that can cover items that might not be covered by the standard policy, such as jewelry, antiques, or water damage from a backed-up drain.
Deductible:
An insurance deductible is the amount of money an insured person pays out of pocket before their insurance company starts paying for covered expenses. Deductibles can vary depending on the type of insurance policy, the level of coverage, and other factors. If your home is damaged and costs $300 to repair, but your deductible is $500, you’ll pay the $300 bill and your insurance won’t pay anything.
Deductibles can be a specific dollar amount or a percentage of the total amount of insurance on a policy. When you purchase an insurance policy, you usually get to choose your deductible amount. Selecting a higher deductible can reduce your rate, but selecting a lower deductible can reduce the out-of-pocket amount you pay when you file a claim.
An insurance premium is the amount paid to an insurance company for coverage, while an insurance deductible is the amount paid out of pocket for a covered claim. Deductibles and premiums often have an inverse relationship, meaning that when one is more affordable, the other is usually more expensive.
Catastrophe Rate Modeling (See Department of Insurance PDF document):
Currently, the Department of Insurance allows the use of catastrophe models for earthquake losses and fire following earthquake. The proposed regulation expands the allowable use of catastrophe models to include wildfire, terrorism, and flood lines for homeowners and commercial insurance lines.
INVITATION TO WORKSHOP EXAMINING NET COST OF REINSURANCE AND RATEMAKING – Residents are invited to participate in the public discussion workshop. The purpose of these discussions is to provide interested and affected persons an opportunity to present statements or comments regarding contemplated future regulations. See pdf link (https://www.insurance.ca.gov/