The dwelling forms (DP-1, DP-2, DP-3) are covered in the national guide. In California, a dwelling fire policy on a residence of up to four units falls under the same residential property rules as a homeowners policy. It also sits on top of the California standard form fire policy (CIC 2070, 2071), and the earthquake offer rules apply.

Standard form fire policy (CIC 2070, 2071)

Fire coverage must be no less favorable than the California standard form fire policy, whose text is in CIC 2071. Key terms:

Residential rules that apply to dwelling policies

• For residential property of up to four units, after 60 days cancellation is limited to the CIC 676 grounds:
  • nonpayment
  • a hazard-increasing crime
  • fraud
  • gross negligence
  • physical changes making the property uninsurable
• Cancellation notices must mention Department review (CIC 677).
• Nonrenewal requires 75 days' notice (CIC 678(c)).
• After a declared wildfire, the one-year nonrenewal moratorium applies (CIC 675.1).
• The earthquake offer applies to residential property policies, and the California Earthquake Authority writes residential earthquake coverage through participating insurers (CIC 10081, 10089.26).
• Insurers must clearly disclose that major perils such as flood are not covered (CIC 10102).
• Insurers that use wildfire risk in rating must give credit for wildfire mitigation measures (10 CCR 2644.9).

When the voluntary market says no

The California FAIR Plan provides basic property insurance: fire, extended coverage, and vandalism. Owners often pair it with a difference-in-conditions policy for liability, theft, and water damage. See the Other Property Insurance guide.

Common exam traps

• The standard fire policy suspends coverage after 60 days of vacancy.
• Proof of loss is due in 60 days, and payment follows 60 days after proof.
• Residential nonrenewal notice is 75 days.
• Smoke from a nearby wildfire is a fire loss.