Sure, you get the declarations page in the mail each year when comes time for your home policy renewal. It’s easy to just file it away and forget about it, but taking a little bit of time to understand the primary coverages outlined on the declarations page is a worthwhile investment of your time. A typical homeowner’s policy contains the following coverages:
Coverage A: Dwelling
This is the primary coverage for the home itself, and offers protection against direct physical damage caused to the dwelling. This includes fixed property within the home as well (fireplaces, carpeting, tile, etc.). Also, if there is a structure attached to the dwelling, such as a garage, that would be also be considered part of the dwelling.
Coverage B: Other Structures
Structures that are not attached to the dwelling are considered other structures. These could include sheds, detached garages, swimming pools, guest houses, etc. Typically the coverage for other structures is 10% of the Coverage A dwelling amount. If you think your other structures could exceed that amount, it may be a good idea to talk to your agent about increasing coverage on these other structures.
Coverage C: Personal Property
Your personal belongings are covered under the personal property coverage. Typically, this is 50% of the dwelling coverage. It is important to have a good understanding of what you own and the value of these items in the event of a loss.
Coverage D: Loss of Use
Loss of use coverage is an important element of a typical homeowner policy and provides coverage for temporary living expenses if your home becomes uninhabitable due to a covered loss.
Coverage E: Personal Liability
Liability coverage covers you for your legal responsibility to others. This coverage may apply whether you become liable for something on or off your property.
Coverage F: Medical Payments
Medical payments coverage pays medical costs if someone is injured on your property.
There are many different homeowner policies available. There may be specific endorsements or exclusions on your policy that provide additional coverage or limit coverage in a certain area. It is best to discuss your specific policy with a licensed insurance agent. Here at The Andrew Agency we are happy to assist you with any questions you have regarding your policy. Give us a call today at 804-320-2886.