Home Insurance Coverage Types

Your homeowners policy is a collection of separate coverages, each with its own limits and rules.

Coverage A: Dwelling Coverage

What it covers: The physical structure of your home — walls, roof, foundation, built-in appliances.

The critical choice: Replacement Cost vs. Actual Cash Value

• Replacement Cost: Pays to rebuild at today's prices (recommended)
• Actual Cash Value: Pays replacement cost minus depreciation

How much do you need? Enough to completely rebuild your home.

Coverage B: Other Structures

What it covers: Detached garages, fences, sheds, guest houses, pools.

Limit: Typically 10% of your dwelling coverage.

Coverage C: Personal Property

What it covers: Your belongings — furniture, clothing, electronics.

Sub-limits to know:

• Jewelry: $$1,500$$2,500
• Firearms: $2,500
• Silverware: $2,500

For expensive items, you need a scheduled personal property endorsement.

Coverage D: Loss of Use

What it covers: Extra costs of living away from home during repairs — hotel, meals, storage.

Limit: Typically 20-30% of dwelling coverage.

Coverage E: Personal Liability

What it covers: Legal costs and damages if someone is injured on your property.

Recommended minimum: $$300,000. Consider$$500,000 or umbrella policy for significant assets.

Coverage F: Medical Payments to Others

What it covers: Small medical bills for guests injured on your property, regardless of fault.

Limit: Usually $$1,000$$5,000 per person.

What's NOT Covered

• Flood damage (need separate flood insurance)
• Earthquake damage (need separate coverage)
• Sewer and drain backup (available as endorsement)
• Termite/pest damage
• Wear and tear
• Mold (limited coverage)

FAQ

Q: Does my policy cover my roof replacement?
A: Only if damaged by a covered peril (storm, fallen tree). Normal wear isn't covered.

Q: Are home offices covered?
A: Limited coverage (typically $2,500). For full business coverage, need endorsement.