What your State Farm (home insurance) contract says

In short

This is a homeowners insurance policy with State Farm, one of the largest home insurers in California. It covers your house structure, personal belongings, and liability if someone gets hurt on your property. However, California homeowners policies typically exclude earthquake and flood damage (you need separate policies for those). State Farm pays out based on the replacement cost of your home, but only up to your coverage limit. Your premium is set for a policy term (usually 12 months), and State Farm can raise it at renewal. California's Department of Insurance regulates what insurers can charge.

What you agree to do

• You must pay your premium on time (either annually, semi-annually, or monthly).
• You must notify State Farm promptly after any loss or damage to your property.
• You must take reasonable steps to protect your property from further damage after an incident.
• You must cooperate with State Farm's investigation of any claim you file.
• You must keep your home in reasonable condition and not increase the hazard risk.

What you can ask for

• You can cancel your policy at any time and receive a prorated refund of your premium.
• You have the right to receive a detailed written explanation if State Farm denies your claim.
• You can request an independent appraisal if you disagree with State Farm's damage estimate.

Points worth knowing

• Earthquake and flood are NOT coveredStandard California homeowners policies exclude earthquake and flood damage entirely. You need separate policies (California Earthquake Authority (CEA) for quakes and FEMA's NFIP for floods).
• Underinsurance risk if home values riseIf your coverage limit hasn't kept up with construction costs, you could be underinsured. State Farm may pay less than it costs to actually rebuild your home.
• Premium increases at renewalState Farm can raise your premium when your policy renews. In California, rate increases must be approved by the Department of Insurance under Proposition 103, but significant increases still happen.
• Deductible applies to every claimYou pay the deductible amount out of pocket before State Farm covers anything. Typical deductibles range from $1,000 to $2,500 per claim.
• Non-renewal in high fire-risk areasState Farm can choose not to renew your policy, especially in wildfire-prone areas of California. California has a moratorium and FAIR Plan as last resort, but coverage may be limited.

Dates and deadlines

Policy renewal date

Annually: 12 months from policy start. State Farm sends renewal notice 45-75 days before.

Claims filing deadline

Report losses promptly. California law generally allows 1 year to file a claim after a covered loss.

Premium payment

Due at start of term or on your monthly/semi-annual payment schedule

Non-renewal notice

State Farm must give you at least 75 days' notice before non-renewing in California