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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.

FAIR Plan
California's last-resort fire insurance program, which exists so that a home with no other market can still buy fire coverage. It is real coverage and it pays claims, and it covers less than a full homeowners policy. casa.insure is independent of the California FAIR Plan; the Plan itself is at cfpnet.com.
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 has not filed its rates and policy forms with California the way standard insurers do. It does not mean unlicensed or unregulated: these companies are licensed and examined where they are based. The practical trade is flexibility, which is how they can price a home the standard market has stopped pricing.
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 one-page 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 your insurer is non-admitted. 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. Two policies covering one home is a common arrangement, and it has one combined cost worth adding up.
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 of written notice first, counted from the day the notice was mailed. It is one company's decision about one policy, not a judgment the whole market shares.
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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