YOU ASK:

What are the different kinds of home insurance coverage?

WE ANSWER:

Home insurance consists of two major sections providing different types of coverage.

Homeowners insurance, Section I protects the private dwelling of the insured, its contents and any other structures on the premises from damage, theft or destruction.

Section II of a home insurance policy protects the insured home owner against legal liability and pays the medical expenses of other people who are injured on their premises.

Home Insurance Coverages

  • Coverage A (dwelling) insures the primary residence of the home owner against different causes-of-loss depending on the type of policy that the insured has selected. In addition, all buildings immediately attached to the dwelling, are protected under Coverage A. The land on which the structures have been built, however, is not covered.
  • Coverage B (other structures) protects any buildings that are detached from the primary dwelling but are still on the premises, against damage, theft or destruction. As is the case with coverage A, land is specifically excluded from this coverage. The insurance amount of Coverage B is usually 10 percent of Coverage A.
  • Coverage C (personal property) is a very important home insurance provision since it insures the home owner's personal belongings. If a loss occurs, insurance providers typically pay half of the coverage amount on the residence as a compensation for the damaged or destroyed contents of the home.
  • Coverage D (loss of use) indemnifies the home owner if their home is temporarily unusable due to a covered loss. Insured home owners are eligible to receive 30 percent of the coverage amount on the dwelling.
  • Home insurance policies also contain several additional coverages, such as property and debris removal coverage, glass coverage, assessment of loss coverage, etc.
  • Coverage E (personal liability coverage) insures the home owner against third-party liability claims. The minimum personal liability amount that home insurance policies offer is $100,000 per occurrence but the insured can set higher liability limits.
  • Coverage F (medical payments to others) covers the medical expenses of other people who happen to sustain bodily injury on the premises of the insured's home. The minimum Coverage F amount is $1,000 per person, and the insured does not necessarily have to be held liable for the insurer to compensate the injured party under this coverage.
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