Living in Beverly Hills means you've got assets worth protecting. Whether you're in the Platinum Triangle or the flats south of Sunset, your insurance needs are fundamentally different from the average California resident. Here's the reality: California's standard insurance requirements were designed for average homes and average risks. But there's nothing average about insuring a $5.5 million property in one of the world's most recognizable ZIP codes.
This guide breaks down exactly what insurance coverage you need in Beverly Hills, from understanding why the state minimums will leave you dangerously exposed to navigating earthquake insurance and the California FAIR Plan. Let's make sure your coverage actually matches your risk.
Why California's Minimum Coverage Falls Dangerously Short
Through the end of 2024, California's minimum auto insurance requirement is 15/30/5. That's $15,000 per person for bodily injury, $30,000 per accident, and just $5,000 for property damage. Think about that for a second. If you rear-end a Tesla Model S on Wilshire Boulevard, you've already exceeded your property damage limit before you even consider injuries. Starting in 2025, these minimums are increasing to 30/60/15, but even these new limits are inadequate for Beverly Hills.
Medical costs from even a moderate accident can easily exceed $100,000. Emergency room visits, surgeries, physical therapy, and lost wages add up fast. In an area where your neighbors are likely high earners with expensive vehicles, carrying only the minimum is financial Russian roulette. Most insurance professionals recommend at least 100/300/100 coverage for Beverly Hills residents, and that's before you layer on umbrella insurance.
The High-Value Home Insurance Challenge
The average home value in Beverly Hills is about $5.5 million, roughly seven times the California average. That creates a unique insurance problem. Traditional homeowners policies often cap out well below what you'd need to rebuild your property, and the California FAIR Plan, the state's insurer of last resort, caps residential coverage at just $3 million. If your home is worth more than that, you're automatically underinsured from day one.
Data from 2024 shows homeowners in the 90210 ZIP code pay nearly $10,000 annually to insure their homes through top carriers. That's not a typo. And rates increased by over 15% for FAIR Plan policyholders in 2024 alone. Major insurers like State Farm have been pulling back from high-value areas due to wildfire risk, forcing more residents toward the FAIR Plan or specialty high-value insurers.
For proper coverage, you'll likely need a combination approach: a FAIR Plan base policy plus a wrap-around or difference-in-conditions policy from a specialty insurer to cover the gap. This layered strategy ensures your full property value is protected. Look for policies that include at least 10% of your dwelling coverage specifically for code upgrades, which became a California requirement in 2025. Rebuilding to current codes after a loss often costs significantly more than the original construction.
Earthquake Insurance: What the CEA Changes Mean for You
Earthquake coverage isn't included in standard homeowners policies. You need a separate policy through the California Earthquake Authority or a private insurer. The CEA made significant changes in 2024 that hit high-value homeowners particularly hard. Personal property coverage, which used to max out at $200,000, is now capped at just $25,000. For a Beverly Hills home filled with art, jewelry, and luxury furnishings, that's essentially worthless.
Even more concerning: homes valued over $1 million or built before 1980 without verified seismic retrofitting now face a minimum 15% deductible. You can no longer select the 5% or 10% options. On a $5 million home, that's a $750,000 deductible before your earthquake insurance pays a dime. This makes earthquake coverage less about recovering from minor damage and more about protecting yourself from total catastrophic loss.
There's a silver lining: if you've properly retrofitted your home, you can qualify for up to 25% premium discounts. Given that CEA policies aren't cheap, this retrofitting investment often pays for itself in reduced premiums over time. You purchase CEA coverage through your existing homeowners insurance company, not directly from the CEA. Make sure you're working with an agent who understands high-value properties and can explain exactly what's covered under these new restrictions.
Why Umbrella Insurance Isn't Optional in Beverly Hills
Here's what most people don't understand about liability: the more you have, the more you can lose in a lawsuit. Beverly Hills residents are attractive targets for litigation simply because of where they live. A guest slips by your pool and suffers a serious injury. Your teenager causes a multi-car accident. Someone claims defamation over something you posted online. Any of these scenarios can result in judgments that exceed your underlying auto and home liability limits by millions.
Umbrella insurance kicks in after your other liability coverage is exhausted. Policies typically start at $1 million, though many Beverly Hills residents carry $5 million or more. High-net-worth specialists like Chubb offer policies reaching up to $100 million for those with substantial assets. The cost is remarkably affordable: typically $150 to $300 annually for the first million in coverage in California. That's less than $25 per month for an extra million dollars in protection.
Most insurers require minimum underlying limits before they'll sell you umbrella coverage, usually around $250,000 for auto liability and $300,000 for homeowners liability. But here's the thing: umbrella insurance also covers things your base policies don't, like false arrest, libel, slander, and invasion of privacy claims. It even covers your legal defense costs, which alone can run into six figures for complex cases.
Getting Your Coverage Right: Next Steps
Start by pulling your current policies and making a list of your actual coverage limits. Compare your dwelling coverage to your home's replacement cost, not its market value. These are different numbers, and replacement cost is what matters for insurance. If there's a gap between your property value and the FAIR Plan's $3 million cap, you need additional coverage now, not after a loss.
Schedule a review with an insurance agent who specializes in high-value homes. Ask specifically about your wildfire risk score, which insurers are now required to explain to California policyholders as of 2025. Understand what mitigation steps might lower your premiums or improve your coverage options. Get quotes for umbrella insurance from at least two carriers, and make sure you understand the underlying coverage requirements.
Finally, document everything you own. Create a detailed home inventory with photos and receipts, and store it somewhere off-site or in the cloud. When you're dealing with insurance companies after a major loss, you'll need proof of what you had. Beverly Hills homes often contain items worth more than entire houses elsewhere. Make sure you can prove it. And remember: insurance is the one thing you buy hoping you'll never need to use it, but when you do need it, you'll wish you had bought more.
