Types of Homeowners Insurance Coverage

Here's a quick refresher on some common types of homeowners insurance coverage options that may be available to California homeowners. A good way to know which coverages are the best fit for your particular needs is to speak with a licensed agent or broker with expertise in California home insurance.

Dwelling Coverage: This can be considered the core of your home insurance policy. It typically covers the cost to repair or rebuild your home if it is damaged or destroyed by a covered event (which, depending on the terms of your particular policy, may include wildfires). Pay special attention to whether your dwelling coverage is based on the replacement cost of your home or its market value.

Personal Property Coverage: This coverage helps protect your personal belongings, such as furniture, electronics, and clothing in the event they are destroyed by a covered event. You may want to consider obtaining additional coverage or increased limits if you have high-value items in your home.

Additional Living Expenses (ALE): If your home is uninhabitable due to a covered event, ALE coverage typically helps pay for temporary living costs while you are displaced, such as hotel bills and restaurant meals.

Liability Coverage: This coverage applies to third party property damage and bodily injury claims brought against the policyholder. For example, if another person is injured on your property or if you accidentally cause damage to another’s property, this coverage can help cover any resulting defense costs and damages.