When you look at your homeowners insurance policy, you'll see it broken down into different sections. The main parts of your policy are typically labeled Coverage A, B, C, and D. Understanding what each of these covers is the first step to knowing how your policy protects you.
These coverages are the foundation of your home insurance, and you can find the specific limits for each on your declarations page. Let's break down what each one means.
Coverage A: Dwelling
Coverage A, also known as dwelling coverage, protects the physical structure of your house. This includes the walls, roof, floors, and foundation. It also covers structures that are attached to your home, like a garage, deck, or porch.
Your Coverage A limit should be high enough to cover the full cost of rebuilding your home from the ground up in case of a total loss. This is one of the most important numbers in your policy, as being underinsured can be financially devastating. Keep an eye out for signs you're underinsured.
Want to see your Coverage A, B, C, and D amounts? Upload your declarations page and we'll break down each coverage section for you. Upload your declarations page for a free analysis.
Coverage B: Other Structures
Coverage B covers structures on your property that are not attached to your main house. This can include:
- Detached garages
- Sheds
- Fences
- Gazebos
- Guest houses
The limit for Coverage B is typically set as a percentage of your Coverage A limit, often around 10%. You can usually increase this limit if you have valuable other structures on your property.
Coverage C: Personal Property
Coverage C protects your personal belongings. This includes almost everything you own, from your furniture and clothes to your electronics and kitchenware. This coverage applies even when your belongings are outside of your home, like if your laptop is stolen from your car.
Your personal property coverage limit is usually set between 50% and 70% of your Coverage A limit. It's a good idea to create a home inventory to make sure you have enough coverage for all your possessions. Note that high-value items like jewelry, art, and firearms often have sub-limits, and you may need to purchase additional coverage for them.
Coverage D: Loss of Use
Coverage D, also known as loss of use coverage, helps with additional living expenses if your home becomes uninhabitable due to a covered loss. If you have to move into a hotel or rental home while your house is being repaired, this coverage can pay for the difference between your normal living expenses and the new, higher costs.
For example, if your monthly rent and food costs are higher than what you would normally pay, Loss of Use can cover that extra amount. The limit for Coverage D is often around 20% of your Coverage A limit.