Home Insurance companies today offer six standard sections of coverage. Knowing these coverage amounts will allow you to maximize the benefits you receive from having home insurance.
Coverage A on an insurance policy is the dwelling coverage amount. The dwelling portion of your insurance covers the physical structure of your home; the walls, floors, ceilings, etc. This coverage protects your home from damage to the actual structure and anything that is permanently attached to the structure.
Coverage B is for other structures on the property. It is common for homes to have other structures on the property that are not connected to the home like fences, mailboxes, sheds, and detached garages.
Coverage C is coverage for your personal property. This coverage insures all of your belongings. This is an essential coverage when the interior of the home sustains damage, like in a fire. On most policies there is only so much coverage that they provide for valuable items such as paintings, jewelry, guns, etc. It is in your best interest to review your policy to see if more coverage is needed to insure you have the right amount of coverage.
Coverage D is for Loss Of Use. This coverage is only used if your home is damaged to the extent that you can no longer live in it. For example, if a pipe bursts and floods the home and it causes you to live in a hotel for a couple of months while the home is being repaired; the loss of use coverage will reimburse you for the expenses such as food, lodging, gas, etc.
Coverage E is personal liability coverage. This coverage protects you from instances where you are liable for negligent actions.
Coverage F is medical payments. Medical payments coverage on a homeowners insurance policy is similar to medical payments on an auto insurance policy. This coverage is to pay medical bills for those who get injured while on your property.
Many homeowners are unaware that flood and earthquake are not covered under home insurance policies. You can purchase separate policies for them which are more affordable than you think. Knowing and understanding your policy can make sure that you and your family are covered properly.
If you should have any questions regarding the ABC's of homeowners insurance (or need a quote!) please feel free to contact one of our agents at (760)245-2561.
Article by Shanna Miller