Arguably the most pivotal portion of your home insurance policy is dwelling coverage, which is called Coverage A in insurance jargon. Coverage A values usually consist of just the building structure with no land value.
Your dwelling Coverage A includes the structure of your home and it’s many parts are protected from risks (also known as perils) that are covered by your policy. If your home’s structure is damaged or destroyed by water, fires, tornadoes, hurricanes, vandalism and hail storms, filing an insurance claim will allow the insurance company to inspect the home and determine what caused the damage.
We will then be able to determine the scope of work which will help define the amount of the covered loss up to the dwelling limit of your coverage.
Which Parts of My Home Does Dwelling Coverage Protect?
Since dwelling coverage, or Coverage A, protects your home’s structure, it’s only needed by homeowners and not by renters. This pivotal coverage extends to far more than just the floors, cabinets, windows and doors, wood, bricks or concrete that make up your home’s structure.
All the various parts of your home are typically protected by dwelling coverage (up to your policy limits) if your Insurance Company finds that a covered peril caused the damage or destruction.
Coverage B is usually up to 10 percent of the dwelling portion of your home insurance policy. protects fences, sheds, unattached garages, fire pits, outdoor kitchens and more items on your property that are excluded in your dwelling coverage, it’s important to evaluate the cost to repair, replace and even rebuild all those structures if they were completely destroyed by a covered peril.
How much Coverage B you need depends on how many other structures you have on the property or build in year after year.
Personal property coverage, which is Coverage C within home insurance policies, helps to pay for your personal items that have been damaged, destroyed or stolen due to a covered peril. It’s standard protection within many home insurance policies and is pivotal to cover those personal items that mean the most to you. Coverage C may act as its own entity in certain cases depending on which covered peril may be used on your claim.
The most common perils that damage or destroy personal belongings are vandalism, fires, tornadoes, hurricanes and hail storms. There are many other covered perils in home insurance policies, but each policy may have different qualifiers to determine coverage.
The most common personal belongings people have inside their homes and often file home insurance claims for are Furniture, Computers, TVs, Electronics, Clothes, and Sports equipment.
The best option to figure out how much coverage you need is to make a Content List of all the personal belongings you store in your home. Then write down how much you bought each for and what year you bought it.
Additional living expense (ALE) or Loss Of Use coverage insurance refers to coverage that covers the additional costs of living incurred by a policyholder should they be temporarily displaced from their place of residence. This coverage usually amounts to about 10% to 20% of the insurance that covers the dwelling.
ALE is intended to cover the insured person for the extra expenses they may incur as a result of being temporarily displaced from their home due to a covered peril like fire or water damage. Covered costs include those that exceed your normal living expenses such as Hotel or apartment rental costs, restaurant meals, boarding costs for a pet, storage fees, laundromat or dry cleaners costs, mileage, rent you would have collected if a tenant was still able to live at the property.
Personal liability coverage can kick into action when you’re found liable for an injury to another person that occurs on your own property. This coverage helps if you’re found liable for such an injury and the incurred related expenses.
If someone is injured on your property and the injury was deemed to be caused by you or a negligent act on your behalf, personal liability coverage can help with Medical Bills, Legal Expenses, Lost Wages, Death Benefits.
Medical payments coverage can help to pay for expenses related to an injury that occurs on your property. It works by reimbursing the policyholder for expenses that have been paid out to things like medical bills and funeral costs that are derived from the injury.
Medical payments coverage is typically used to cover small, less-costly injuries due to the typically low maximum limit it has. It’s oftentimes enacted to prevent smaller injuries from becoming major problems, helping to pay for things like an ambulance ride, stitches or follow-up physical therapy treatments.