Homeowners insurance policies typically include four primary coverages: Coverage A (Dwelling), Coverage B (Other Structures), Coverage C (Personal Property), and Coverage D (Loss of Use). Each protects a different part of your home or your financial responsibility after a covered loss.
Understanding the different types of homeowners insurance coverage can help you make sure your policy provides the protection you need for your home, property and belongings.
What Is Coverage A (Dwelling) Insurance?
Coverage A protects the physical structure of your home, generally referred to as the dwelling. This includes the main structure of your house and certain components attached to it.
It’s important to make sure you have enough dwelling coverage to help rebuild your home after a covered loss. Your homeowners insurance agent can help you determine whether your current Coverage A limit is adequate, or if you need to consider increasing.
Be sure to notify your insurance agent about recent home improvements, renovations or additions. Your agent may have access to Replacement Cost Estimate (RCE) software that can help estimate the new cost to rebuild your home and determine whether your current dwelling coverage limit is still sufficient.
What Is Coverage B (Other Structures) Insurance?
Coverage B, also known as Other Structures coverage, generally applies to structures on your property that are separate from your home.
Other structures are generally defined as structures that are set apart from the dwelling by clear space or connected to the dwelling only by a fence, utility line or similar connection.
Common examples of other structures may include:
- Driveways
- Fences
- Mailboxes
- Garden sheds
- Detached garages
- Gazebos
- Pool buildings
- Ground-anchored swing sets
Larger or higher-value structures, such as a detached garage, gazebo or pool building, may require special attention to make sure you have enough Coverage B to repair or replace them after a covered loss.
Coverage A and Coverage B limits are not interchangeable, so be sure to tell your insurance agent about all of the structures and outdoor property on your property.
For example, a swing set anchored to the ground may be considered a Coverage B item, while the value of a screen enclosure attached to your home may be included under Coverage A. Coverage can vary depending on your policy, so check with your insurance agent if you have questions about how a specific structure is covered.
What Is Coverage C (Personal Property) Insurance?
Coverage C protects the personal property, or contents, of your home. A simple way to think about it is: If you could turn your home upside down, the items that would fall out may generally be considered personal property.
This includes belongings that are not permanently attached to or built into your home.
Examples of personal property may include:
- Jewelry, such as a new diamond anniversary ring
- Antique silverware and china
- Musical instruments and recording equipment
- Coin collections
- Original artwork and sculptures
- Furniture, clothing and electronics
Creating a complete home inventory can help you determine whether your personal property coverage limit is adequate. A home inventory can also help you document your belongings in the event you need to file a homeowners insurance claim.
Some high-value or special items may require additional coverage, such as a Personal Articles Endorsement or other specific coverage. Examples may include valuable jewelry, antiques, collectibles, artwork or other items that require a specific valuation.
After completing your home inventory, talk with your insurance agent about your belongings and whether your homeowners insurance policy provides the coverage you need.
What Is Coverage D (Loss of Use) Insurance?
Coverage D, also known as Loss of Use coverage, may help pay for additional living expenses if covered damage makes your home uninhabitable and you need to live somewhere else temporarily.
Depending on your policy, this coverage may help with certain additional expenses while your home is being repaired after a covered loss. These expenses could include costs associated with temporary housing and other necessary increases in living expenses.
Your homeowners insurance policy outlines the specific coverage available to you, including applicable limits and conditions.
Some Other Coverages to Consider
Other important coverages include Coverage E (Personal Liability), and Coverage F (Medical Payments to Others). Contact your agent to find out which coverages are right for you.
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