For years, companies offering homeowner’s insurance in California have been reluctant to insure certain prospective customers due to their loss history or the loss history of the property they are interested in buying. Insurance premiums have become especially costly and some now contain unfavorable restrictions, as well as new limits and exclusions. Many insurers have also announced that while they will renew existing policies, they will not write new ones. Plus, a few insurers have indicated that they are considering withdrawing from the California insurance market altogether.

Given the difficulty and expense of obtaining insurance, you’ll of course want to familiarize yourself with the details of any prospective policy. If you currently hold a policy, take another look at the fine print to make sure that the coverage meets your needs. Your goal should be to avoid any unpleasant surprises if you should need to file a claim. Review your policy carefully and pay particular attention to the following aspects:

• Amount of Coverage: Read the fine print, as insurers now place more limits, restrictions and exclusions on policies than in the past. If you own property in San Francisco, where home prices seem to be on a limitless rise, make sure that your policy automatically takes into account increases in property value. If not, talk to your agent about purchasing a rider that that covers this variable annually.
  
  
• Coverage of Your Home: What exactly does your policy cover? It might not insure all that you think it does. Make sure that any additions or improvements to your house — new hardwood floors or a second bedroom, for example — have been added to the policy. Call your agent for details on how to do this. Be prepared to provide photographs, if necessary.
  
  
• Coverage of Contents: If you’ve recently purchased expensive electronic equipment or jewelry — e.g., a new flat screen TV, a laptop computer or an engagement ring — you’ll want to make sure that these items are covered. Again, you’ll likely have to provide documentation and photographs to your agent.