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The words on your quote, in plain English.

Insurance has a vocabulary problem. Here is what the terms on a California quote or notice actually mean, written the way a person would say them.

All 20 terms

FAIR Plan

California's fallback fire insurance program, often called the insurer of last resort, for homes that cannot get coverage from a regular insurance company. It covers fire, lightning, and smoke, with wind, hail, and vandalism as add-ons, and leaves out water damage, theft, and liability. Every insurer that sells basic property insurance in California must belong to it.

Surplus lines insurance

The part of the insurance industry built for risks the standard market turns down, including many California homes. On Casa we call these companies specialty insurers. They are reachable only through a licensed agent, which is why they never appear on a comparison site.

Non-admitted insurer

An insurer that is not licensed by the State of California. It can insure a California home only through a licensed broker, and the state sets rules for which of these insurers a broker may use. The state does not approve its prices, and the state fund that pays claims when an insurer fails does not cover its policies.

Admitted carrier

An insurer that files its rates and policy forms with the State of California and is reviewed on them. These are the big names most homeowners know. Their customers are backed by California's insurance guaranty fund, which is why a search worth having starts here.

D-1 disclosure form

A short notice California requires you to sign before a specialty insurance policy starts. The state wrote the wording, so nobody gets to draft a friendlier version. It tells you plainly that the insurer is not licensed by California, and what that means for you. It is a notice, not a contract: signing it does not commit you to buy anything.

DIC policy (the wrap)

A second policy that sits alongside a fire-only policy and fills in what it leaves out. That means liability, water damage, theft, and a place to stay while your home is repaired. DIC stands for difference in conditions. One full policy can replace both.

The check a licensed agent runs before placing your home with a specialty insurer. The standard insurers are asked first, and what they say is written down. That is why every search starts with the big names, and it is handled for you, because California requires it.

Binder

Temporary written proof that coverage is in place while the full policy documents are being issued. It carries the same weight as the policy for the period it covers. That is why a lender will accept one at a closing. Your policy documents follow it.

Evidence of insurance

The one-page document a mortgage lender asks for as proof your home is insured. It names the insurer, the coverage amounts, the policy dates, and your lender. Getting the lender's name and loan number exactly right on it is what keeps a closing on schedule.

Mortgagee clause

The line on your policy that names your mortgage lender and its address. It is how the insurer and the lender find each other. The exact wording is supplied by the lender and has to match. A small error here is one of the most common reasons a lender rejects an otherwise fine policy.

Force-placed insurance

A policy your mortgage servicer buys for the property when it believes your own coverage has ended, and then charges to you. It protects the lender's interest in the building, not your belongings and not your liability. It typically costs far more than a policy you arrange yourself.

Non-renewal

Your insurer decides not to offer you a new policy year when your current one ends. California requires at least 75 days (90 days beginning January 1, 2028) of written notice first, counted from the day the notice was mailed. For a mailed notice, the law adds five calendar days to the notice period, or 10 if it was mailed from or to another state. It is one company's decision about one policy, not a verdict from other insurers.

Cancellation

The insurer ends your policy in the middle of its policy year, rather than declining to renew it at the end. It runs on a much shorter clock than a non-renewal, and the reasons an insurer may use are narrower. If your letter says cancelled rather than non-renewed, read the reason first and treat it as urgent.

Deductible

The part of a claim you cover yourself before the insurer pays. A higher deductible lowers your yearly price but costs you more if something happens, and a lower one does the reverse. Some California policies also carry a separate, larger deductible for wildfire losses, so it is worth reading both.

Replacement cost

What it would cost to rebuild or repair with materials of the same kind and quality, at today's prices. Nothing is taken off for age or wear. The alternative, actual cash value, subtracts depreciation and pays less. Which one your policy uses matters more than almost anything else on it.

Dwelling coverage

The part of your policy that pays to repair or rebuild the house itself, and usually the largest amount on the page. It is based on rebuild cost, not on what the home would sell for, because land does not burn. It is often shown as Coverage A.

Loss of use

The part of your policy that pays for somewhere to live when a covered loss makes your home unlivable. It can also cover the extra costs of being displaced, such as meals or storage. Some policies call it additional living expense.

CLUE report

An insurance claims history report that follows both you and the property. Claims filed by a previous owner can appear on a home you just bought. Insurers pull it when they price your home. You are entitled to see your own, and to have an error corrected.

Fire hazard severity zone

A wildfire hazard rating the state assigns to mapped areas of California, from moderate through very high. It is a public map, and it is not the same thing as the score an insurer assigns your address. Insurers run their own models, which is why two homes in the same zone can get different answers.

Extended replacement cost

An add-on that pays above your dwelling limit if rebuilding costs more than expected, up to a stated cushion. It exists because construction prices spike after a disaster, exactly when a whole neighborhood is rebuilding. It is one of the most useful things to ask your agent about.

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