California's natural landscape is stunning but is also fraught with natural hazards. Homeowners across California are confronting the truth of living in some of the most disaster-prone land in the United States, from jagged mountains to coastal cliffs. Wildfires and earthquakes have recently become more frequent and intense - they have changed not only how Californians live, but how they insure their homes. If you're a homeowner in California, you need to know how these risks will impact your home insurance coverage and your property for your own peace of mind and for your investment.

1. The Growing Risk of Wildfires

Wildfires in California are more devastating, unpredictable, and widespread, and what has been a seasonal event is now a year-round reality. The result? Homeowners insurance premiums are sharply increasing, and in high-risk areas, some insurers are reducing or curtailing policies altogether.

What does this mean for homeowners?

You will need to consider narratives and policies along with your current policy that allow for damage sustained due to wildfires. Consider options such as extended dwelling protection or debris removal. Ask your insurer if they will cover rebuilding at current market value, equivalent to what you originally purchased your home for.  At Sierra Mountain Insurance, we connect clients with insurance carriers that work in high-risk zones, and we keep your home properly insured when the others walk away.

2. Earthquake Coverage: The Overlooked Coverage

We often hear how California sits on top of major fault lines, yet many homeowners still do not carry earthquake insurance. A standard home policy will not cover damage as a result of an earthquake that means structural damage, cracks in the foundation or total loss would be paid out of pocket. Smart homeowners are now adding earthquake endorsements to their existing policy, or purchasing a separate earthquake policy to include coverage.

These plans typically include coverage for:

Rebuilding or repairing damage to the structure

Replacing personal belongings

Temporary living expenses while repairing the home

3. The New Normal: Gaps in Coverage and Rising Costs 

As natural disasters are happening in all areas of the country, insurance companies have become stricter with underwriting. This means:

Higher premiums in high-risk zones

Stricter criteria for eligibility when applying for new policies

Longer wait time to approve a claim

Ultimately, the good news is that independent agencies like Sierra Mountain Insurance work with many insurance carriers. We are able to research for you, and find the optional part of coverage, and negotiate cheaper rates. Furthermore, our goal is to ensure that you never pay too much for adequate coverage.

4. Ways You Can Protect Your Home

Here are some ways you can be proactive to make

Review your policy each year — and you can make sure your rebuilding costs and coverage limits are up-to-date.

Ask about defensible space discounts for fire mitigation efforts (clearing vegetation, etc.).

Bundle your home and auto insurance for substantial multi-policy discounts.

Make sure you are up-to-date with the latest risk assessments and insurance updates for your area.

Final Thoughts

California has a blend of natural beauty and natural risk. However, with the right insurance strategy, you will be able to feel confident about the future. At Sierra Mountain Insurance, we try to help homeowners re-evaluate the changing landscape of wildfire and earthquake coverage. Whether renewing or starting anew, we will make sure your primary asset, your home  is insured no matter what nature throws at you.