Types of Coverage in Homeowners Policies

Oddly in the Insurance industry agents and brokers will use confusing codes in letters to refer to certain types of coverage.  Even more confusing Coverage A for one type of insurance may have an entirely different meaning in another type of insurance.  As to Homeowners Insurance, the following describes the types of coverage that are typically found in such policies:




Coverage A:
Damage to House
Covers damage to the house. The face amount of the policy (for example $100,000) is the most you will receive if your house is totally destroyed.
Coverage B:
Other Structures
Covers damage to other structures or buildings, such as a detached garage, work shed, or fencing.
Coverage C:
Personal Property
Covers damage to, or loss of personal property. Personal property includes household contents and other personal belongings used, owned or worn by you and your family.
Coverage D:
Additional Living Expense
Covers additional living expenses when incurred. This means that the policy covers the necessary living expenses up to the stated limit, incurred by the insured to continue, as nearly as possible, the normal standard of living when the house cannot be occupied due to a covered loss.
Coverage E:
Comprehensive Personal Liability
Covers personal liability. This coverage protects you against claims arising from accidents to others on property that you own or rent. With a few exceptions, such as auto or boating accidents, it is an all purpose liability policy that follows you wherever you go.
Coverage F:
Medical Expense
Covers medical expenses. Coverage is limited to an amount per person and per accident for injuries occurring on your premises to persons other than an insured, or elsewhere, if caused by you, a member of your family, or your pets. An important feature of this coverage is that payment is made regardless of legal liability.