The homeowner policy has many details and can be intimidating to read. Here we put together a general summary of policy information that might help simplify coverage information for you.
A homeowner’s policy is usually divided into six separate coverage parts: A through F. Your typical policy will also include further explanations of coverage, perils, exclusions, conditions and definitions.
Coverage A – Your Dwelling
This section provides the actual protection of your home, including the roof, walls, floors, plumbing, etc.
Coverage B – Other Structures
This section applies to other structures on your premises not connected to your home, such as garages, sheds, barns, etc. The typical limit for this coverage is 10% of your home’s value; however, this can be increased if necessary.
Coverage C – Personal Property
This section covers all your personal property at home or away. There are limitations and exclusions to certain kinds of property such as money, jewelry, guns, securities, gold, silver, watercraft, automobiles, recreational vehicles, etc. The typical limit for this coverage is 70-75% of the value of your home. This can also be increased as needed.
Coverage D – Loss of Use
In the event your residence is damaged and cannot be used during the repair period, this coverage provides for your reasonable living expenses while your family is unable to occupy your home. Some policies have a specific dollar limit, while others have “actual loss sustained” with a time limitation of 12 months. Depending on the time to rebuild your home, a dollar limitation may not be adequate.
Coverage E – Bodily Injury, Personal Injury, and Property Damage
This is your liability section. It provides protection from claims if you or any family member is negligent and causes injury to others or damage to property. The insurance company will provide a lawyer to defend you if necessary.
Coverage F- Medical Payments to Others
This coverage pays for the reasonable medical expenses of others injured on your premises or caused by the activities of you, a resident family member, or a pet.
Your policy will also include further explanations of coverage, perils, exclusions, conditions, and definitions.