Understanding Different Types of Home Insurance Coverage

Home insurance isn’t one-size-fits-all—especially in California, where natural disasters such as wildfires, earthquakes, and floods can complicate coverage. Whether you’re a first-time homeowner or reviewing your current policy, understanding the different types of home insurance coverage can help you protect your investment.

Dwelling Coverage

This is the foundation of your homeowners insurance policy. It covers the physical structure of your home—from the roof to the walls and built-in appliances—against covered perils such as fire, wind, and vandalism. In California, it’s imperative to ensure your dwelling coverage reflects current construction costs, which can be high in some regions.

Personal Property Coverage

This may financially protect the belongings inside your home—furniture, electronics, clothing, and more. Standard policies cover personal property up to a certain limit, but high-value items (such as jewelry or art) may require additional endorsements for complete protection.

Liability Protection

If someone is injured on your property or you accidentally damage someone else’s, liability coverage may help pay medical bills, legal fees, or repair costs. Many California homeowners opt for higher liability limits due to the state’s legal environment.

Additional Living Expenses (ALE)

Also called “loss of use,” ALE may cover temporary living costs—such as hotel stays and meals—if your home becomes uninhabitable after a covered event. Given California’s wildfire risk, this can be vital to your policy.

Earthquake and Flood Insurance

Standard home insurance policies typically do not cover earthquakes or floods. Homeowners may need to purchase separate policies for these hazards.

Learn More

Choosing the right home insurance coverage means understanding your risks and tailoring your policy to your needs. Contact Shelton Insurance today to get the coverage you need.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.