Homeowners insurance isn’t a cookie cutter policy that works the same way for every homeowner. Each policy has different classifications and sections, all of which cover different parts of your home and its contents. Depending on your coverage needs and the how much you can afford, each section can be tailored to your needs. Here is a quick tutorial on the basic ABC’s of insurance!
Coverage A – Dwelling Coverage
Also known as dwelling coverage limit, this portion of a policy covers your home’s physical structure in the event that it is damaged or destroyed by covered perils such as fire, wind, hail, or vandalism. If your home was completely destroyed by what is referred to as a “total loss,” such as a fire, you would receive the amount listed on your policy’s Coverage A limit.
Coverage B – Other Structures
Coverage B covers other structures. What does this mean exactly? Think about any structures on your property that are not attached to the main dwelling. This can include a detached garage, shed, mailbox, gazebo or any other detached structure. If your fence is knocked over by a storm, your policy could also cover it.
Coverage C – Personal Property
This portion of your coverage is responsible for covering your personal belongings. This includes just about everything inside your home. However, in the event of a loss, you must have an up-to-date home inventory to determine how much your valuables cost. Review your policy to ensure you have enough coverage for your items, especially if you have items of higher value such as jewelry, firearms, paintings, computers, etc.
Coverage D – Loss of Use
What happens when there is a disaster and you can’t live in your home while it’s being repaired…who covers the cost? Coverage D of your homeowners policy will help offset this additional cost! In the event you are displaced, your coverage D can cover expenses such as temporary lodging, additional food and gas expenses you incur while away from home. This covers items above and beyond your normal living expenses.
Coverage E – Personal Liability Coverage
This coverage protects you against claims arising from accidents to others on property that you own or rent. With a few exceptions, such as auto or boating accidents, it’s an all-purpose liability policy that follows you wherever you go. This means if a claim is made or a suit is brought against you because of bodily injury or property damage arising from a covered occurrence, Coverage E will help cover this cost. This cost is usually pretty minimal.
Coverage F – Medical Payments
What if your dog bit someone? That’s where medical payments coverage comes in! This coverage works similarly to an auto insurance policy and pays for medical bills for those who get injured while on your property, or elsewhere, if caused by you, a member of your family, or your pets.
Remember, Flood Coverage is not included in your homeowners policy!
Always speak with your agent to learn the limitations of each portion of your homeowners insurance policy and see if you need additional coverage on any portion(s) of your policy. Your coverage should be as unique as your home and it’s contents.