There are six major coverages
in a homeowner policy.
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Dwelling
(Coverage A)
Provides coverage when there is damage to your
residence.
Limits for this coverage are determined by a replacement
cost estimation. Contact an agent or visit www.accucoverage.com
for an estimate on your home.
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Other
Structures (Coverage B)
Coverage is provided when there is damage to structures
on your property that are not attached to the
home.
Limits for this coverage are typically 10% of
the dwelling coverage amount.
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Personal
Property (Coverage C)
Provides coverage when there is damage to or theft
of personal property anywhere in the world.
Limits for personal property are typically 70%
- 75% of the dwelling limit.
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Additional
Living Expense (Coverage D)
Coverage provided when there are added living
costs incurred when there is a loss. This is usually
in the form of rent, meals or utilities.
Limits for this coverage are usually 20% of Coverage
A.
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Personal
Liability (Coverage E)
This coverage provides for personal liability
for injuries or property damage caused to others
at your home or anywhere in the world. This does
not apply to any automobile related claims. Available
limits are anywhere from $50,000 to $1 million.
**Additional liability limits are available through
personal umbrella policies**
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Medical
Payments (Coverage F)
A no fault coverage that provides medical expense
payments to guests injured on your property. Limits
of $1,000 to $5,000 are typical. |
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Optional Coverages
- There are other optional coverages available that
should always be considered.
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Replacement
Cost (Home) – The Replacement
Cost Endorsement protects against your Dwelling
or Other Structures coverage not being enough
to cover the cost of rebuilding. Most companies
will provide an additional 20% - 50% to Coverages
A and B with this endorsement.
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Replacement
Cost (Personal Property) –
This endorsement does the same thing as the Replacement
Cost (Home) Endorsement, only for your Personal
Property.
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Scheduled
Personal Property – Homeowner
policies will place limits on particular personal
property items such as: jewelry, fine arts, collectibles,
firearms, sporting equipment, etc. Items with particular
value that are difficult to replace should be scheduled
on the policy. |
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Policy Types
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Homeowners
Policy (form HO3) – includes
coverages A - F.
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Condominium
Owners Policy (form HO6) –
includes coverages A - F. The Personal Property
limit is determined by the insured with limited
coverage for Dwelling and Other Structures.
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Renters
Policy (form HO4) –
includes coverages C – F. The Personal Property
limit is determined by the insured.
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Exclusions
The devil is in the details. The best way to find out
what is covered and what is not under your Homeowner
policy is to read the exclusions. There are many, but
the two that stand out are flood and earthquake damage.
These coverages can be purchased either in an endorsement
or under a separate policy.
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Discounts
Many discounts are available with Homeowner policies.
Making sure you have smoke alarms, deadbolts and at
least one fire extinguisher is obvious. Discounts are
also available for Senior Citizens, security systems,
interior sprinklers and, possibly the most significant,
combining your Automobile and Homeowner policies with
the same company.
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