Homeowners Insurance Basics Guide

No — it's replacement cost versus actual cash value. On a high-value home, insuring to full replacement cost matters far more than shaving premium; the cheapest policy is usually the wrong lens when a claim comes.

Water/sewer backup and earthquake. Old side sewers, heavy rain, and slope lots make backup coverage important, and earthquake is a real regional risk standard policies usually exclude — both are add-ons owners skip until a claim teaches them.

For most owners here it's worth pricing seriously — the regional seismic risk is real and standard policies exclude it. Whether you add it is a risk-tolerance call, but it should be a deliberate decision, not an accidental gap.

It covers damage when a sewer or drain backs up into the home — a real risk with older side sewers, heavy rain, and slope drainage. It's typically a cheap endorsement that closes an expensive, common gap.

For a high-net-worth household, usually yes. An umbrella adds liability coverage above your home and auto limits for a modest cost — cheap protection for the assets a high earner has to lose.

Insure to replacement cost, add the backup and earthquake endorsements you need, and layer an umbrella — then price it. Reviewing that fit (and a sharp local agent) is part of a Real Estate Review.