Most homeowners insurance policies cover the following scenarios:

Dwelling (Coverage A): Dwelling coverage is important in the event of a covered loss to pay for the cost to repair or rebuild. Your “dwelling” is considered the main structure of the home and anything that is attached to the structure, like an attached garage, an attached shed, an attached breezeway, attached cabinets, flooring, plumbing, roof, etc. What about unattached structures, are they covered, you might wonder? Other Structures coverage will discuss these instances.

Remember, Dwelling Coverage or Coverage A should be high enough to replace the home if there is a total loss. It doesn’t necessarily need to be as high as “market value” of your home, as your location will still be there if the house burns down. What you need to consider is the cost of building a similar new home. Don’t have too little coverage because if the worst were to happen, and you are under insured, you would need to pay out of pocket to make up the difference.

Other Structures (Coverage B): Any structure not physically attached to the main dwelling such as a detached garage or gazebo, casita/guest house, barn, etc., are types of structures that are covered under “Other Structures” coverage. For most insurance carriers, the coverage is a flat percentage of the main dwelling coverage, usually about 10%. Be sure you tell your insurance agent about all such structures on your property.

Personal Property (Coverage C): What about all your belongings in the home? Is that covered? It is with Personal Property Coverage. There are two types of coverages you can get for your personal property with a homeowner’s policy.

1. Actual Cash Value (ACV), which is the depreciated value or market value of your personal property. 
2. Or Replacement Cost, which replaces your belongings with a “like” item.

Liability (Coverage E): Did someone fall or hurt themselves while at your property? Liability (Coverage E) will protect you or other residents of your home who may be responsible for bodily injury and property damage sustained by others. However, this does not cover intentional acts.

This is generally inexpensive coverage to be well protected. If you are ever sued for an injury sustained while at your property, you will be so glad you paid the small difference in price to have higher liability limits on your property.

Medical Payments (Coverage F): Medical Payments provide coverage to pay for medical bills and expenses for those who get injured while on your property. This does not apply to residents of the covered property.