Homeowners Insurance in Gilroy, San Jose & the South Bay

What a California homeowners policy covers

A homeowners policy has two halves. Section I is property (Coverages A–D); Section II is liability (E and F).

A, Dwelling

Your house and attached structures.

B, Other structures

Detached garages, sheds and similar. Normally limited to 10% of Coverage A; you can buy more.

C, Personal property

Your belongings. There are special limits on jewelry, antiques, furs, collectibles, fine arts, firearms, silverware and money; you may want to schedule these items separately.

D, Loss of use

Additional living expenses (housing, meals, storage) if you can't live in the home after a covered loss. Normally limited to 20% of Coverage A. Keep receipts.

E, Personal liability

Defense and damages if you or a household member is legally responsible for injury to others. Doesn't cover intentional acts.

F, Medical payments to others

Reasonable medical bills for people accidentally injured on your property; not your own household.

For more detail, see the California Department of Insurance residential insurance guide.

HO-3 in one paragraph

Most owner-occupied homes are written on an HO-3 ("special form") or a carrier's own version of it. The house and other structures are covered against direct physical loss except what's excluded (open perils). Belongings are covered only for listed causes such as fire or lightning, windstorm or hail, theft, vandalism, sudden and accidental water discharge, and freezing (named perils). Many carriers use their own versions of this form.

What's usually not covered

Flood, earthquake, earth movement, mold, wear and tear or maintenance, water damage from seepage or leaks, and a house left vacant 60 days or more.

California insurers that write homeowners coverage must offer earthquake coverage for an extra premium; it may come from your home insurer, another insurer or the California Earthquake Authority. Flood comes from the National Flood Insurance Program or a private flood policy. I quote both earthquake and flood coverage, so we can look at them together with your homeowners policy.

Replacement cost, extended replacement cost and ACV: the part most quotes differ on

How a claim is paid depends on the loss-settlement type, not just the premium. California's required disclosure says: "Actual Cash Value Coverage is the most limited level of coverage listed. Guaranteed Replacement Cost is the broadest level of coverage."

• Actual cash value (ACV): pays to repair, rebuild or replace, less a deduction for depreciation, up to the limit.
• Replacement cost: pays without a depreciation deduction, but only up to the policy limit. Many policies pay only actual cash value until you've begun or completed repairs.
• Extended replacement cost: adds coverage above the dwelling limit, up to a stated percentage or dollar amount.
• Guaranteed replacement cost: pays the full cost to repair or replace regardless of the dwelling limit.
• Building code upgrade (ordinance or law): covers the extra cost of meeting current building codes, which may otherwise be excluded.

Is your dwelling limit based on a real rebuild estimate?

Insurers providing replacement cost must give you a rebuild-cost estimate every other year at renewal, or apply a local construction-cost inflation factor and offer a new estimate. A proper estimate includes labor, materials, overhead and profit, demolition and debris removal, permits and plans; it can't be based on land value or your loan balance.

I start from what it would cost to rebuild your home, not the sale price or the loan. If you've remodeled, read more about updating limits after a remodel.

Why underinsurance matters

United Policyholders reports that two-thirds of the disaster victims they help through their Roadmap to Recovery program find themselves underinsured.

California claim protections every homeowner should know

These are rights worth knowing before you ever need them.

• Time to collect full replacement cost: at least 12 months from the first actual-cash-value payment, or at least 36 months after a declared state of emergency, with 6-month extensions for good cause.
• Rebuilding elsewhere: after a total loss, an insurer can't deny replacement cost (including extended replacement cost) or building code upgrade just because you rebuild or buy somewhere else; payment is capped at what it would cost at the original location.
• Loss of use after a state of emergency: at least 24 months, plus up to 12 more for delays beyond your control, subject to your policy's dollar limits.
• Contents without a full inventory: after a state-of-emergency total loss of a furnished primary home, the insurer must offer at least 30% of the dwelling limit, up to $250,000, without an itemized list; you can then claim more up to your contents limit.
• Advance on living expenses: after a state-of-emergency total loss, the insurer must advance at least four months of living expenses on request.

These apply to policies subject to California law, and some apply only after a declared state of emergency. Your policy's wording and limits still apply, so read your declarations page. Source: California Department of Insurance's 2025 notice of residential insurance laws.

Homes in wildfire areas, non-renewals and the FAIR Plan

Insurers must give at least 75 days' notice of a non-renewal and state the reason; if notice is late, the existing policy stays in effect for 75 days from when the notice is sent. The notice must point you to the Department of Insurance's Home Insurance Finder and the California FAIR Plan.

The Department's advice: ask the insurer what mitigation might keep your coverage, start shopping right away, and use local agents and brokers. The FAIR Plan is available to every homeowner as a last option; because it covers only fire or lightning, internal explosion and smoke, add a Difference in Conditions (DIC) policy, a separate policy that fills gaps like theft, water damage and liability. Surplus lines carriers, which aren't licensed ("admitted") in California but are allowed to write coverage here, are another option.

Surplus lines insurers aren't backed by the California Insurance Guarantee Association. That's a trade-off we'll talk through.

Home hardening can qualify you for discounts under the state's Safer from Wildfires program (Class A roof, ember-resistant vents, enclosed eaves, a 5-foot ember-resistant zone, upgraded windows, defensible space). Discounts vary by carrier.

How I shop a wildfire-area home

I check admitted carriers first, then surplus lines, then FAIR Plan + DIC. I'm registered with the California FAIR Plan as a broker.

Got a non-renewal notice? Send it over and I'll start shopping.

Live in Morgan Hill, Gilroy or San Martin? Read the South County wildfire guide.

What affects your homeowners premium

• Rebuild cost and dwelling limit
• Construction, age, roof and systems
• Location and wildfire exposure
• Claims history
• Deductibles and options chosen
• Mitigation work
• Bundling

A larger deductible may lower your premium if you can take on more of the risk, and some companies offer discounts for alarms, smoke detectors and sprinklers.

Compare the coverage, not just the premium

Two quotes for the same house can buy very different protection. A lower price may mean a lower dwelling limit, actual cash value instead of replacement cost, no extended replacement cost, a higher deductible or lower liability limits. It may also just be a carrier pricing the risk differently. Sometimes the cheaper quote is the right one, and I'll tell you if it is.

Got a cheaper quote? Send me both and I'll show you what's different.

See the full side-by-side checklist

How a quote with Mark works

1. Send me the address, your current declarations page, and any renewal or non-renewal notice.
2. I review your limits, loss settlement, deductibles and endorsements.
3. I shop multiple carriers: admitted first, then surplus lines or FAIR Plan + DIC if needed.
4. I show you the quotes side by side, including what's different, not just the price.
5. You decide, and I re-check at renewal.

As a broker, I represent you, not a single insurance company. What's available depends on your home's location and carrier acceptance.

Who it's for

• Owner-occupied single-family homes in Gilroy, Morgan Hill, San Jose and Santa Clara County
• Homes in wildfire-prone areas, and owners declined or non-renewed by their current carrier (see FAIR Plan + DIC)
• Buyers in escrow who need proof of insurance for the lender
• Condo owners need a different policy (condominium insurance); landlords need a rental policy (investment property insurance and owner-occupied vs. tenant-occupied)

Why South Bay homeowners work with Mark

• Independent broker in Gilroy, protecting individuals and businesses since 2011
• Office at 1329 1st St Suite B, Gilroy, CA 95020, serving Gilroy, Morgan Hill, San Jose and the South Bay
• Access to multiple carriers, including admitted, surplus lines and FAIR Plan options; what's available depends on your location and carrier acceptance
• Earthquake and flood quoted alongside your homeowners policy
• Registered California FAIR Plan broker
• 4.9 / 5 from 80 Google reviews

"Life's too short for generic advice."

Related coverage

Frequently asked questions