Homeowner’s insurance…what does it offer? That depends on your insurance company, and the coverage you have selected. But, there are some general coverages that are very similar in most policies. Here’s an overview of what is included on your homeowner’s policy.

When you look at your policy, the information will be laid out differently depending on your company, but all companies offer the following basic coverages:

Coverage A is the dwelling. This is the amount of coverage for the home and any attached structures. Some policies are on a Replacement Cost basis, which would provide coverage to rebuild your home with new materials in the event of a loss. Others are on an Actual Cash Value basis, which factors in depreciation to the value of your home. The amount listed here is the basis for the amount you would receive in the event of a claim.

Coverage B is for any other structures, and is typically 10% of the coverage A amount. (Some companies offer additional amounts, for additional premium). This would cover any unattached structures, such as garages, pole barns or other outbuildings or sheds.

Coverage C is for personal property. Again, this coverage is typically 50% of coverage A, but can be more. This provides coverage for property owned or used by the insured anywhere in the world. In other worlds, assuming your policy has theft coverage, and you have some jewelry stolen from your hotel room in Europe, most policies would cover the claim (if it is under the limit of liability listed below).

One thing to consider on your Personal Property coverage is that most policies have limits of liability for certain types of items. For example, most basic policies only cover $200 in money or bank notes; $1,500 for securities, passports, stamps or deeds; $1,500 for loss by theft of jewelry, watches, furs or precious stones; $2,500 for loss by theft of firearms; $2,500 for loss by theft of silverware, goldware or pewterware. There are several others, including watercraft and boat motors. And, some companies will over special packages that increase these limits.

Finally, Coverage D is the Loss of Use section. If you have a claim that prevents you from using your home, this is the amount the insurance company would pay for increased living expenses. For example, if you have a fire that displaces you, the company would help pay for either a hotel or a rental house to live in until your home is repaired. This coverage is typically 30% of Coverage A, though some companies offer “actual loss” amounts, which will cover the amount you incur in a 12 month period.

In the future, we will discuss some of the liability sections, as well as some additional options you may have for coverage with your homeowner’s policy. If you have questions about any parts of your policy, please contact your insurance agent to get more clarification.

Each insurance policy is unique. While some generalities can be made, each situation should be reviewed on a case-by-case basis. This is not considered advice on any specific insurance matter. Please contact an agent to discuss any concerns you may have.