What is the home owner insurance coverage?


Home owner insurance policies may vary significantly in their coverage of different causes-of-loss. This is why we cannot speak of uniform home owner insurance coverage, but of different coverages.

Before purchasing a policy, you should pay attention to what is covered under it, and - above all - what is specifically excluded from the policy. If your home is exposed to a certain risk that is not covered, you should try to find a way of adding an endorsement, or purchasing an additional policy, to get the necessary protection.

Remember that home owner insurance policies are full of exclusions and restrictions, which you must be aware of before signing the insurance contract.

Home Owner Insurance Coverages

The majority of home owner policies have two sections consisting of several coverages each.

  1. Section I consists of four basic and one additional coverage, as follows:
    • Coverage A provides protection to the dwelling and the attached structures.
    • Coverage B insures other structures that are on the premises of the property, such as barns or stables.
    • Coverage C protects the home owner's property contents, or personal belongings.
    • Coverage D promises to indemnify the home owner if their property becomes unusable due to damage or loss.
    • There are some additional coverages to each home owners insurance policy, such as debris removal, property removal, collapse of building, etc.
  2. Section II of home owners insurance provides liability coverage, as follows:
    • Coverage E protects each home owner from personal liability.
    • Coverage F promises to cover the medical payments of others.

What home owners policies differ in greatly, is their scope of covering different causes-of-loss. According to this, home owner insurance can be basic, broad or special. Basic home owners insurance only covers a dozen causes-of-loss. Broad form home owners policies provide broader coverage, and special form home insurance protects one's home and its contents against any damage or loss, unless specifically excluded.

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