Time To Review Your Homeowners Insurance?

Homeowners insurance isn’t just a box to check, it’s a critical safeguard for your home and financial well-being. And in 2026, with higher rebuilding costs, more frequent natural disasters, and insurance companies pulling back from key markets like Los Angeles, it’s more important than ever to make sure your coverage is actually working for you.

Step 1: Know Your Coverage Limit
Your coverage limit is the maximum amount your policy will pay to (1) rebuild your home, (2) replace personal property and (3) cover any liability for any injury to other persons or property. But do you have enough coverage?
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To check, compare your policy’s dwelling coverage amount to your home's current rebuild cost (NOT ITS MARKET VALUE). You can estimate this by:
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        •︎  Using a free online rebuild cost calculator (such as the one here)
        •︎  Calling your insurer to request a replacement cost estimate
        •︎  Checking with a local contractor for a rough per-square-foot estimate
        •︎  If your coverage is less than the cost to rebuild, you may want to increase it, particularly if you’ve made upgrades to it or live in a high-value area. To do so, contact your insurer, or alternatively consider looking for a new policy if they are unwilling or unable to extend or amend your coverage.
        •︎  In addition, your limit should cover the value of your personal belongings, including furniture, clothing, electronics, and other valuables. For high-value items like jewelry or collectibles, consider “scheduling” them with separate riders to ensure they are fully covered.
        •︎  You’ll also need liability coverage to cover the cost if someone is injured or their property is damaged while on your premises and you are found liable. You should consider at least $300,000 - $500,000 in liability coverage, and more if you have a swimming pool, trampoline, or dog, which can lead to greater liability. If your net worth exceeds the coverage limits, you can purchase an umbrella policy to provide additional coverage.

Step 2: Understand Your Deductible
Your deductible is what you’ll pay out-of-pocket before insurance kicks in. But many policies now carry higher deductibles for specific risks, like wind or fire damage. Check your policy for:
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        •︎  Your standard deductible (typically a fixed USD amount)
        •︎  Any separate deductibles for events like wildfires, earthquakes, or other natural disasters
        •︎  How these compare to your emergency savings

A lower premium is often accompanied by a higher-deductible, so make sure that tradeoff makes sense for your financial situation and the coverage that you need.

Step 3: Watch for Coverage Gaps
Standard policies often exclude common risks like:
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        •︎  Flooding
        •︎  Earthquakes
        •︎  Mold
        •︎  Sewer Backups

These exclusions should be clearly listed in your declarations page or policy summary. If you want protection for one of these risks, ask your insurer:
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        •︎  Is coverage available through a rider or alternatively is a separate policy required?
        •︎  How much would it add to your annual premium to cover the gap in coverage?

Step 4: Review Your Provider
Insurers in some areas (including parts of California) are limiting coverage or existing markets altogether. If you find that your provider is no longer renewing policies, or if premiums have recently spiked, it’s a good time to begin comparing policies and considering a new provider.

Bottom Line: a quick review today can save your major stress and potentially thousands of dollars later. Smart coverage starts with knowing what you’re paying for and what you're actually protected from.