Homeowner's and Renter's Insurance Claims
If you are a homeowner or a renter in the State of California, you likely have an insurance policy that is intended to protect you in the event of a covered loss. Like most people, you probably did not read through the entire policy before purchasing the coverage. Consequently, you may suffer injury to your person or property that is covered by your policy without realizing it is covered. Likewise, if you are injured while on someone else’s property, you may be entitled to make a claim against the homeowner’s or renter’s insurance policy for your injuries.
Homeowner’s Insurance Basics
If you took out a mortgage loan when you purchased your home, you were required to purchase homeowner’s insurance. Given the high cost of real estate in California, most other homeowners also purchase insurance to protect their investment. When you purchase a homeowner’s insurance policy it should include, at a bare minimum, covered losses related to damage to your dwelling, liability, and medical payments.
Dwelling coverage typically applies to damage to your home as well as additional structures on the property. It also covers losses related to personal property and loss of use. Liability insurance covers you in the event a third party is injured while on your property and you are at least partially at fault. It also applies when a neighbor’s property is damaged, and you are at fault. If you are sued, your liability coverage will cover your legal fees and other losses (up to the policy limit).
Although similar to liability insurance, medical payments insurance covers injuries to guests even if you are not at fault. Not surprisingly, the limit for your medical payments coverage is likely no more than $5,000 unless you specifically requested a higher limit.
California Renter’s Insurance
Landlords often require a tenant to provide proof of renter’s insurance before entering into a lease agreement. Renter’s insurance is similar to homeowner’s insurance; however, it does not provide coverage for structures on the property. Instead, it covers losses of personal property, loss of use, and liability in the event someone is injured on the property.
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Although every policy is unique, there are some common scenarios under which most homeowner’s or renter’s policies should cover losses, such as:
- A pipe breaks or bursts in your home causing water damages to your floors, furniture, and belongings. Note however, that if the pipe had a pre-existing leak, that you knew or should reasonable be aware of, the insurance company will most probably deny your claim.
- A sewer line backs up causing water, mold, and other damages in your home.
- A nearby brushfire causes fire and/or ash, soot, debris, or even smoke damage to your home and belongings, causes you fire and burn injuries, and/or causes you to become ill as a result of the smoke.
- A tree branch breaks during a storm and damages your garage or breaks a window, making the home inhabitable for several days.
- A strong wind blows off the roof of your house causing significant damages to your property, and most importantly, injuring a family member.
- A guest in your home slips and falls sustaining personal injuries.
Losses That May Not Be Covered under a Standard Insurance Policy
It is equally important to know what a standard homeowner’s or renter’s insurance policy does not cover in California. For each of these types of losses, you may need to purchase additional coverage or even a separate insurance policy.
- Wildfires – a standard homeowner’s insurance policy will cover damage caused by fire, including wildfires or brushfires; however, if your home is in an area deemed high-risk for wildfires by insurers, you may be required to purchase additional coverage or be denied coverage altogether. Sometimes, you could even have received a letter in your mail – which you could easily miss or not pay attention to – which had limited or eliminated your insurance coverages for fire. Some California insurance careers have recently placed a cap on the amount you may receive in case of a fire, ash, soot, or smoke claim. To help homeowners, the California State Insurance Commissioner enacted a law that prevents home insurance companies from denying coverage due to wildfire risk up to December 2020. The mandatory one-year moratorium covers more than 800,000 residential policies in ZIP Codes adjacent to recent wildfire disasters under the Wildfire Safety and Recovery Act.
- Floods – within the last 20 years, every county in California has been declared a federal flood disaster area at least once, according to the state’s Department of Water Resources. Usually, a standard homeowner’s or renter’s policy will notcover flood damage. (Note: this applies to damage caused by storm flooding, not water damage caused by a broken pipe.) You can double-check your insurance policy to make sure this or other coverages are included in case something unexpected happens. To ensure that your home and belongings are protected from flood damage, you will likely need to purchase flood insurance through the National Flood Insurance Program or other insurance carriers.
- Earthquakes – despite the fact that California is a hot spot for earthquakes, just 10 percent of California homeowners have earthquake coverage, according to the Insurance Information Institute. A standard homeowner’s policy will not cover most damage caused by an earthquake; however, it must cover fire damage that results from an earthquake. You must purchase additional or separate insurance coverage if you want all damage caused by an earthquake to be covered.
Consult with a California Fire, Smoke, and Water Claims Attorney
Insurance companies in California have specific policy requirements for claims under homeowner’s or renter’s policies. Policy requirements can – and do – change periodically, especially coverages and terms for fire and water damages. If you suffered a property loss or injury, or if you believe someone else has a claim against your homeowner’s insurance policy for personal injuries or property losses, talking to a California insurance attorney can help you protect your rights and interests.
