If you live in Westlake Village, you're probably aware that this beautiful community straddling Los Angeles and Ventura Counties comes with some serious insurance challenges. With median home values hovering around $1.4 million and wildfire risk affecting 99% of properties, finding adequate coverage isn't just important—it's essential. But here's what most people don't realize: the California insurance market has fundamentally changed in the past two years, and the old rules no longer apply.
This guide walks you through everything you need to know about protecting your home, belongings, and financial future in Westlake Village. We'll cover the unique risks you face, the coverage gaps you need to address, and practical strategies for securing comprehensive protection even as major insurers pull back from the California market.
Understanding Westlake Village's Unique Risk Profile
Westlake Village isn't just another Southern California suburb. Your specific location—whether you're on the Ventura County or Los Angeles County side—affects everything from property taxes to insurance availability. Properties on the Ventura side often have slightly better access to traditional homeowners insurance, though both sides face significant wildfire exposure.
The wildfire statistics are sobering. Nearly every property in Westlake Village has at least some wildfire risk over the next 30 years. This isn't theoretical—it's why major insurers like Allstate paused writing new California policies in November 2022, and why Farmers now limits new policies to just 9,500 per month statewide. When USAA, Chubb, and other carriers restrict coverage in high-risk areas, Westlake Village makes the list.
Then there's earthquake risk. California sits on major fault lines, and while earthquake insurance is optional, it's worth serious consideration. The California Earthquake Authority (CEA) offers coverage specifically designed for California homeowners, though recent policy changes have significantly reduced personal property limits and increased deductibles for high-value homes.
Don't overlook flood risk, either. About 25% of Westlake Village properties face moderate flooding risk over the next three decades. Standard homeowners policies exclude flood damage, so you'll need separate flood insurance if you're in a vulnerable area.
Navigating the California Insurance Crisis
Here's the reality: California's insurance market is in crisis, and Westlake Village homeowners are feeling it. Premium increases have hit 42% in wildfire-prone areas, and the average California policyholder will pay over $1,000 more annually by 2026 compared to 2023. That's on top of already-high premiums for luxury properties.
When traditional insurers won't cover you, the California FAIR Plan becomes your fallback. Think of it as the insurer of last resort. More than 610,000 California homes now rely on the FAIR Plan—a dramatic increase that reflects how many homeowners have been dropped by traditional carriers. In 2024, the state expanded FAIR Plan coverage limits to $3 million for residential properties, which sounds generous until you realize many Westlake Village homes exceed that value.
The FAIR Plan covers fire damage but typically requires you to purchase a separate policy for other perils like theft, liability, and water damage. This "wrap" coverage can be hard to find and expensive. You'll also notice the FAIR Plan doesn't include many features standard in traditional policies, like identity theft protection or enhanced replacement cost coverage.
If your home is valued above $3 million, you're in a particularly tight spot. You'll need to work with specialty insurers who focus on high-value properties—companies like Chubb, AIG, PURE, or Cincinnati Insurance. These carriers offer higher coverage limits and premium features, but they're also selective about which properties they'll insure, especially in wildfire zones.
Essential Coverage for High-Value Homes
Your standard homeowners policy probably isn't enough. With home values ranging from around $360,000 to over $12 million in Westlake Village, and neighborhoods like Morrison Estates commanding premium prices, you need endorsements specifically designed for luxury properties.
Start with guaranteed replacement cost coverage. This ensures your home gets rebuilt to its original condition regardless of the policy limit—critical when construction costs spike after a major disaster. Extended replacement cost (typically 25% above your dwelling limit) is better than nothing, but guaranteed replacement cost is the gold standard.
Personal property coverage deserves special attention. Standard policies limit coverage for jewelry, art, wine collections, and other valuables. Schedule these items separately with actual cash value or agreed value coverage. If you own a $50,000 watch or a $100,000 painting, you want it specifically listed on your policy with professional appraisals backing up the value.
Consider ordinance and law coverage, which pays for upgrades required by current building codes when you rebuild. California's codes have evolved significantly, especially regarding fire resistance and seismic safety. Without this endorsement, you could face tens of thousands in out-of-pocket costs to bring your rebuilt home up to code.
Cash settlement options give you flexibility if you decide not to rebuild after a total loss. Some high-value insurers also offer "green upgrade" endorsements that cover eco-friendly materials during rebuilding—worth considering given California's environmental focus.
Why Umbrella Insurance Is Non-Negotiable
Here's what keeps insurance agents up at night: homeowners with significant assets who carry only the standard $300,000 liability limit on their homeowners policy. In Westlake Village, where net worth often runs into the millions, that's dangerously inadequate.
Umbrella insurance extends your liability coverage beyond your home and auto policy limits. It covers bodily injury, property damage, and legal defense costs when someone sues you. The general rule? Carry umbrella coverage equal to your net worth. If your home is worth $1.4 million and you have another million in retirement accounts and investments, you need at least $2-3 million in umbrella coverage.
The cost is surprisingly reasonable—typically $150-300 annually for the first $1 million, then about $75 per additional million. To qualify, you'll need minimum underlying coverage on your home and auto policies, usually $250,000 for auto liability and $300,000 for homeowners liability. Many Westlake Village residents carry $5 million in umbrella coverage, and some go higher.
Think of it this way: if someone seriously injures themselves on your property and sues you for $2 million, your homeowners policy covers the first $300,000. Without umbrella coverage, you're personally liable for the remaining $1.7 million. Your savings, your home equity, your future earnings—all at risk. For a few hundred dollars a year, that's a risk you shouldn't take.
Earthquake Insurance: What Changed and What It Means
The CEA made significant changes to earthquake coverage in 2023-2024 that directly affect Westlake Village homeowners. The most dramatic? Personal property coverage dropped from $200,000 to just $25,000. If an earthquake destroys your furniture, electronics, clothing, and other belongings, you're looking at a maximum of $25,000 in coverage. For most Westlake Village homes, that's nowhere near adequate.
Deductibles also increased for high-value and older homes. If your home is valued over $1 million or was built before 1980 without verified seismic retrofitting, your minimum deductible is now 15%. On a $1.5 million home, that's $225,000 out of pocket before insurance kicks in. The 5% and 10% deductible options are no longer available for these properties.
The CEA also eliminated the breakables coverage endorsement, so items like dishes, glassware, and artwork damaged in an earthquake fall under that $25,000 personal property limit. Building code upgrade coverage remains at $10,000 (with options to increase to $20,000 or $30,000), and loss of use coverage ranges from $1,500 to $100,000.
There's a silver lining for retrofitted homes: you can qualify for premium discounts up to 25% if your house has been seismically retrofitted to better withstand earthquakes. Given the high deductibles, these discounts can make earthquake insurance more affordable over time.
Practical Steps to Secure Comprehensive Coverage
Start by working with an independent insurance broker who specializes in California high-value homes. They have access to multiple carriers and can shop your coverage across traditional insurers, specialty high-value carriers, and the FAIR Plan. This is especially important now that the market has become so fragmented.
Get a current replacement cost estimate for your home. Construction costs have increased significantly, and your coverage limits should reflect today's reality, not what your home cost five or ten years ago. Many insurers require updated appraisals for high-value properties.
Document your personal property with photos, videos, and receipts. Create a detailed home inventory that includes serial numbers for electronics, appraisals for jewelry and art, and purchase records for high-value items. Store this documentation off-site or in the cloud—you don't want your only records to burn in a fire or get destroyed in an earthquake.
Consider wildfire mitigation steps that might improve your insurability. Creating defensible space around your home, installing fire-resistant roofing and siding, and removing brush can make you more attractive to insurers. Some carriers offer discounts for these measures, and they genuinely reduce your risk.
Review your coverage annually. The California insurance market is evolving rapidly, with regulatory changes, new carrier options, and shifting availability. What wasn't possible last year might be available now, and vice versa. Stay proactive rather than waiting for your carrier to non-renew you.
Protecting your Westlake Village home requires more than just checking a box on your mortgage paperwork. It demands understanding your unique risks, navigating a challenging insurance market, and building a comprehensive coverage plan that addresses wildfire, earthquake, flood, and liability exposures. The investment in proper coverage—from high-value home endorsements to adequate umbrella policies—is small compared to the assets you're protecting. Work with experienced professionals, stay informed about market changes, and don't wait until renewal time to address coverage gaps.
