Homeowners Insurance

Homeowners Insurance policy is designed to protect the owner or renter of a dwelling which combines property coverage for the dwelling structure, personal property coverage for the contents, and personal liability coverage: 

Coverage A—Dwelling

The limit of insurance for the dwelling is based on the value of the home and what it would cost to replace the home.  

Coverage B—Other structures

This coverage limit applies to detached structures such as a garage, fences or storage sheds. The limit of coverage is set at 10% of the dwelling. 

Coverage C—Personal Property

Covers personal property at the insured residence for a set percentage (usually 50%) and extends coverage to personal property owned or used by an insured off the premises for the greater of 10% of the Coverage C limit or $1,000.  

Coverage D—Loss of Use

This coverage applies if the insured temporarily were to lose use of the dwelling in the event of a loss under Coverage A.  Payment would be made for expenses incurred to live elsewhere following a loss that makes the home unsuitable for living. Another method used to determine payment for loss of use is fair rental value, which is the amount of rent that could reasonably be charged for the premises less any expenses that do not continue while the premises are unsuitable for living.

Coverage  E—Personal Liability

Provides coverage for defense and damages in the event that a claim or suit is brought against the insured because of bodily injury or property damage. Coverage is provided at the insured's premises and is extended to the personal (nonbusiness) activities of the insured homeowner or spouse, relatives of either, and others under the age of twenty-one in the care of the homeowner. 

Coverage F—Medical Payments to Others

Provides reimbursement of reasonable medical expenses for injuries sustained by a third party as a result of the insured's activities, whether or not the insured is legally liable.