When you bought your home, you probably picked an insurance policy quickly because escrow needed proof of coverage by a date. That's normal. It's also why most new homeowners are slightly underinsured, missing key endorsements, or paying more than they need to.
The first 12 months are the best time to fix it. Here's the checklist.
Month 1: Verify what you actually bought
Pull out your declarations page
The dec page is the summary of your policy: coverage amounts, deductibles, and major endorsements. You should be able to find it in your closing documents or by logging into your carrier's portal.
Check Coverage A (dwelling) against rebuild cost
This is the most-often-wrong number. Coverage A should be the cost to rebuild your home, not what you paid for it and not the appraised value. In California right now, accurate rebuild cost for most homes is somewhere between $300 and $600 per square foot, depending on location and finishes.
If your dwelling coverage is $400,000 on a 2,500 sq ft Santa Maria home, you're likely $300,000+ underinsured. The lender's required minimum is not the right amount — it's the bare minimum to protect the loan.
Check the deductible
Most policies default to $1,000 or $2,500. Many California carriers now write higher minimums ($5,000 or even $10,000). Make sure you can actually write that check in a claim.
Month 2: Add the endorsements you almost certainly need
Extended or guaranteed replacement cost
This endorsement adds an extra 25% to 50% above your dwelling limit, which protects you from rebuild cost overruns. After major fires, construction costs spike — this is the buffer that prevents a total loss from becoming a partial recovery.
Building code / ordinance or law coverage
If your home is more than 10 years old, the building code has changed. A rebuild after a covered loss has to meet current code — which adds cost. Without this endorsement, you pay the difference. Get coverage of at least 25 percent of your dwelling limit.
Water backup / sewer backup
Backups from drains, sewers, and sump pumps are excluded from standard policies. This $40 to $100/year endorsement covers a very common claim.
Service line coverage
The underground lines from the street to your house (water, sewer, electric, gas, internet) are your responsibility if they fail. A cracked sewer lateral can cost $5,000 to $20,000. The endorsement is usually under $50/year.
Month 3: Document your personal property
Your contents coverage (Coverage C) is usually 50 to 70 percent of dwelling — for most California homes, that's $200,000 to $400,000 of coverage. After a fire or major theft, you'll be asked to itemize everything.
Take a video walkthrough
Walk every room with your phone camera, narrating: 'This is the living room, this is the couch, here's the TV, model number XYZ.' Open closets, drawers, the garage. Upload to cloud storage. Update annually.
Photograph high-value items
Jewelry, art, electronics, collectibles. Photograph each one with the model number or serial number. Keep purchase receipts where possible.
Schedule jewelry and collectibles separately
Standard policies sub-limit jewelry at $1,500 to $2,500 total for theft. A scheduled item endorsement (a 'rider') covers each piece for its actual appraised value. Required for any single item worth more than the sub-limit.
Month 4: Earthquake decision
Standard homeowners excludes earthquakes. In California, this is a real decision, not a default. Get a quote from the CEA (California Earthquake Authority) and decide consciously whether the premium is worth it for your home's location and your finances.
We covered this in detail in our earthquake insurance post a few days ago — worth reading.
Month 5: Liability review
Bump your liability limit
Default liability is $100,000 or $300,000. For most homeowners, $500,000 is the right minimum. The cost difference is typically $20 to $50 a year.
Consider umbrella insurance
If you have meaningful assets (home equity, savings, retirement accounts), a $1 million umbrella policy stacks on top of your home and auto liability for around $200 to $400 a year. It's the cheapest serious asset protection available.
Months 6-9: Maintenance that affects your insurance
Roof care
Insurers care about roof age. Most policies require replacement once your roof is 20+ years old (some sooner). Photograph the roof annually. Address visibly missing or curling shingles immediately.
Tree management
Branches over the roof and within 10 feet of the house are an insurance issue. Trim them. In fire zones, defensible space is mandatory — 5 feet of non-combustible material around the home, 30 feet of reduced vegetation.
Plumbing checks
Replace old washing machine hoses with stainless braided ones. Install a water sensor near the water heater and under sinks. A $30 sensor that texts you about a leak prevents thousands in damage.
Month 10: Mid-policy review
Have a conversation with your agent about claims you didn't file. Did you have a small leak under the sink? Did the kids put a hole in the drywall? Insurers track frequency — small frequent claims raise rates more than a single large claim. Sometimes paying out-of-pocket is better.
Month 11: Shop the renewal
California carriers are still volatile. Get 2 to 3 fresh quotes about 30 days before your renewal date. Switching carriers doesn't carry the stigma it used to. If you can save 15+ percent with comparable coverage, it's usually worth the change.
Month 12: Update everything
Renovations
Did you remodel a bathroom, add a deck, finish the garage? Tell your carrier. Renovations increase rebuild cost, and unreported improvements can be excluded from coverage.
New high-value items
Update your jewelry schedule, add any new high-value electronics or art.
Beneficiary and contact info
Verify the named insureds, mortgage company, and contact information are current.
If this checklist feels overwhelming, we'll do it for you. Bring in your declarations page and we'll walk through every line and flag what needs attention.
Written by
ACIAI Team
Licensed California Insurance Agents
The ACIAI editorial team — a group of licensed California agents helping families navigate auto, home, life, and business insurance across the Central Coast.
