Section 1 of a Home Insurance Policy

Some of the most important insurance concepts that can affect you, aren’t commonly discussed, here’s a guide to some of the major issues.

Section I odds and ends

A couple of final thoughts, as we wrap up section I: Deductibles, Loss Settlement, and Valuation. Since there is much to be said on each of these subjects, I have included completely separate pages on each topic. Still, it is important, that if you are unsure how these work, to take a look at the applicable section.

  1. Deductibles
  2. Loss Settlement
  3. Valuation

To get an incredible quote these coverage sections start our online quote form. To Talk to a licensed agent about this coverage call us at 1-877-784-6787.

This coverage explanation is for illustration purposes only and is general in nature. Coverage explained here may not apply to your policy, State, company, or situation. For more information about how your policy would respond in the event of a loss, please refer to the terms and conditions and declarations page of your policy.

Coverage B Other Structures

If Coverage A provides insurance coverage for the dwelling and things that are attached to the dwelling, “Coverage B Other Structures” provides insurance coverage for all structures that aren’t connected to the dwelling. In this case “structures” is a complicated way of saying anything that is constructed.  For example, a detached garage (remember an attached garage would be coverage A), fences, storage buildings like sheds and greenhouses, in ground pools, barns, sports courts, gazebos, walkways, and driveways.

Usually the limit of coverage A will be defaulted to 10% of the value of the home, although more can be purchased. This limit is a “blanket” meaning you will have one limit for all your other structures, be sure you are purchasing enough to cover your needs. For example if you have a nice 2 car garage, pool, or mother-in-law quarters you probably don’t have enough coverage.

Coverage B Other Structures will have the same coverage form and loss settlement as Coverage A Dwelling. Again, the special form is always the best form. Replacement cost is always better, but you need to get the proper limits for it to work best. Also, it is important to note that if you intend to rent out an other structure such as a pool house, mother-in-law quarters or something similar or use it for business, coverage can change. If you have a situation like this explain this to your agent to ensure you get proper coverage.

Rental Property Insurance Coverage – Section 1 Coverage

Protecting your stuff is why you purchase insurance. The section I coverage of a rental property insurance policy tells you what will be covered and how.

Rental Property Insurance Coverage – Section I Coverage

Section I – The part of insurance you care about

Every insurance policy has sections. On a rental property insurance policy the there are two sections. Inventively, they are called Section I and Section II. This article breaks down Section I only. Under each section, there are a handful of coverage parts. Insurance doesn’t have to be complicated. So, let’s see if we can break these down into understandable pieces.

Section I – Protects your stuff, you know the stuff you care about. There are typically 4 parts or coverage items provided by section I.

Coverage A – Dwelling – This will be the rental property itself; the main house. PLUS, it will include anything that is attached to the house. So, things like attached porches, decks, car ports, and patios are part of the dwelling. However, if it’s only connected by a wire or a fence, there is no coverage.

Coverage B – Other Structures – This includes any buildings or structures that are not connected to the house. Including, but not limited to things like: detached garages, storage buildings, fences, pools, gazebos, walkways, and driveways.

Coverage C – Personal Property or Contents – This is tricky, because most rental properties don’t come furnished. Also, contents or personal property of tenants are NOT covered. So, for typical investors, this is going to include things such as refrigerators, stoves, washers, dryers and other appliances, but check your policy some of these things may be covered as a part of the house.

Coverage D – Loss of Use – If a rental property suffers a covered loss, and becomes uninhabitable, the insurer will pay the “fair rental value” for the rents that are lost. Meaning that if there is a fire, and your renters move out while things are being fixed, you can still be reimbursed for the rent that you would have otherwise received.

That’s it. Four coverage parts in Section I. Pretty simple. So, you have the house, any other structures, the stuff inside, and the rent you receive. Not complicated at all.

Start your quote online now, or contact with questions about Section I. Our licensed agents can walk you through the process, just call 1-877-784-6787.