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Coverages for a Standard Homeowners Insurance Policy

Homeowners insurance plays a key role in helping protect your house from a variety of situations. A standard insurance policy will cover more than the physical structure of your house, such as your personal belongings, loss of use, liability, and burglary. Understanding the typical coverages available in a homeowners insurance policy is important in helping you find the best policy to meet your needs.

Here is an overview of the coverages in a typical homeowners insurance policy.

Coverage A – Dwelling
Dwelling coverage gives protection for the structure of your home, which also includes your windows, floors, roof, and doors. A coinsurance clause may state that losses will be adjusted at replacement cost if the dwelling is insured up to 80% of its actual value.

Additional structures that are typically protected by dwelling coverage include attached porches, patios, and your garage. Built-in appliances are often protected, such as a hot water heater, sump pump, and furnace. An in-ground pool also falls under most typical dwelling coverage policies.

Dwelling coverage is known as Coverage A, as it’s only needed for homeowners and not renters. This insurance coverage offers protection against storm damage, vandalism, fires, and theft. Reaching out to an insurance agency is always a great option if you have any additional questions about dwelling coverage.

Coverage B – Additional Structures
Coverage B provides coverage for any additional structures around your property that are not used for business activities. Typically, Coverage B is limited to 10-20% of Coverage A, but additional amounts may potentially be available through endorsement.

These additional structures cover a variety of items, such as sheds, fences, barns, greenhouses, driveways, gazebos, or guest cottages. All of these structures are protected against the same dangers as your home, whether it’s fire, vandalism, theft, or storm damage.

While Coverage B offers a lot of protection for your additional structures, it does have some limits. For example, this policy won’t cover any contents within your other structures, whether it’s pool supplies, garden tools, or sports equipment, as these are typically covered by personal property coverage.

Coverage C – Personal Property
Coverage C provides coverage for personal belongings. However, it’s important to remember that Coverage C is limited to the loss or theft of certain types of items. Typically, this policy will require 50-70% of Coverage A, as you have the flexibility to pay additional coverage.

A few of the most common personal property insurance claims include computers, TVs, furniture, clothes, and electronics. Making a detailed list of your personal belongings and the cost of these items can help you determine how much personal property coverage you will need.

Coverage D – Additional Living Expense/Loss of Use
Coverage D offers insurance coverage for any additional living expenses due to a covered event that causes your home to be temporarily uninhabitable while it’s being rebuilt or repaired. Fair rental value is also included if any part of the residence was rented. However, the rental income for the living space is only covered and not the utilities or other services.

Additional Insurance Coverage
Homeowners insurance may also include additional coverage for a variety of expenses. A few of the most common expenses include debris removal, building additions, trees and shrubs damage, identity theft, landlord furnishings, and reasonable repairs.

Types of Exclusion
A specific exclusions section is included in an open perils policy, as you need to be aware of this information on your homeowners insurance policy. These exclusions are typically earth movement, water damage, intentional loss, neglect, concurrent causation, power failure, mold damage, nuclear hazard, septic tank backup costs, and war. Property insurance may potentially not cover an increase in expenses due to a local ordinance.

A standard homeowners insurance policy doesn’t cover flood damage, as it’s a separate policy that’s available to purchase from private insurers and the National Flood Insurance Program (NFIP). Purchasing flood insurance is required if you live in a high-risk flood area. However, it’s typically not required if you live in a low or moderate-risk area for flooding.

Coverage E – Personal Liability
Coverage E offers protection from claims due to accidents to others on any property that you rent or own. Personal liability coverage also offers financial protection against lawsuits filed by a third party. A few exceptions to personal liability coverage include auto or boating accidents.

Coverage F – Medical Expense
Coverage F offers protection for medical expenses due to injuries occurring on your premises, whether it’s due to you, family members, or one of your pets. Payment is always made regardless of any legal liability.

Contact Wellcovered Insurance to Learn More About Homeowners Insurance
Wellcovered Insurance is an insurance agency that works with a variety of insurance carriers to help customers find the best options at a fair price. We have a local office in Orange City, and we take pride in offering fast and friendly services for customers throughout Seminole and Volusia County. Our team can help you get an auto insurance quote in 15 minutes, and it only takes one or two business days to receive a quote for homeowners insurance. Wellcovered Insurance is also a proud member of the DeLand Breakfast Rotary and West Volusia Regional Chamber of Commerce.

Contact Wellcovered Insurance today to learn more information about homeowners insurance and receive a free quote!