Basic Coverages Homeowner insurance policies provide protection for several different things all in one policy. The coverage parts of a homeowner policy are listed below. Keep in mind that your policy may provide more or less coverage depending on your needs and the type of policy you purchase. For example, a renter’s policy will not provide Coverage A – Dwelling, since you do not own the property where you live. Your insurance agent or insurance company can help you determine which coverage and homeowner policy form is right for you.
- • Coverage A – Dwelling: This coverage protects you for insured damages to your home, including plumbing, wiring and permanently installed heating and cooling systems as well as attached structures.
- • Coverage B – Other Structures: This coverage provides protection for unattached structures like sheds, garages and fences. Usually, coverage is limited to 10% of the amount of your Coverage A limits; however, it may be possible to purchase additional coverage.
- • Coverage C – Personal Property: This coverage offers protection for the contents of your home and items belonging to other family members residing with you. The personal property coverage limit is typically 50% of the dwelling limit (Coverage A), but you may be able to purchase more coverage. Generally, Personal Property coverage pays the Actual Cash Value (ACV) of the damaged item unless you have purchased a replacement cost coverage endorsement. Actual Cash Value means the value of the item as it is now, considering its age and condition.
- • Coverage D – Loss of Use: If a covered peril, such as a fire, forces you to live elsewhere temporarily, this coverage provides assistance for additional living costs beyond what you would normally pay, including reasonable hotel costs and additional expenses for meals or laundry. It is important that you maintain receipts and documentation of the additional expenses for your insurance company to review. Loss of Use coverage is usually limited to 20% of Coverage A – Dwelling.
Judah Gross is an insurance agent with Gross & Company.