Dwelling protection: This portion protects the actual structure of the home. If a tree falls on the roof, for example, or a vandal breaks your glass door, you can submit a claim to have your insurance company help pay for the repairs after you meet your deductible.

While the state of California and the broader insurance industry will handle the estimated $40 billion cost from the Los Angeles wildfires, homeowners will likely get burned by higher policy costs, S&P Global said in a research note.

Rising homeowner’s insurance costs could disrupt some financial plans in the coming years. Premiums rose by more than 20% last year in six states and are likely to keep rising nationwide thanks to an increase in weather-related disasters and rising building costs.

Devastating natural disasters are becoming a more common occurrence across the United States, often destroying personal property and homes. Learn More: 10 Things the Middle Class Won't Be Able