Coverage Basics

A standard home insurance policy provides you with six different types of coverage. Each type of coverage has different policy limits and is designed to cover you for different things. Your deductible only applies once for a covered event, no matter how many of the below coverages are used.

  • Coverage A – Coverage for your dwelling. This covers damage to your home in the event of a covered loss.
  • Coverage B – This is coverage for other buildings on your property, like a shed, barn, or garage. Normally the limit on this coverage is 10% of your dwelling coverage.
  • Coverage C – Coverage for personal property. This covers all of your belongings in your home, although there are important exclusions or caps on things like jewelry, guns, furs, and cash. Coverage for vehicles is normally excluded as well.
  • Coverage D – Coverage for loss of use, also known as additional living expenses, or ALE. This coverage pays hotel and restaurant bills if you cannot use your home because of a covered loss.
  • Coverage E – Personal Liability Coverage. This is coverage protects you if someone is hurt on your property.
  • Coverage F – Medical Payments. This covers medical payments for invited guests that are injured on your property and do not wish to sue.

In addition, most policies include extra coverage for debris removal, trees, shrubs and plants, and Law and ordinance also known as code update. There are usually a few other goodies available as well.


By Jeff Britton