Homeowner’s Insurance coverage can be complicated, but it doesn’t have to be. Sometimes the best thing to do is to look at things from 30,000 ft and take things one step at a time. Insurance for homes and dwellings is pretty straightforward and can be broken down into 6 coverage parts. Let’s take a look at it visually.
Not too bad, but you need more. Below is an explanation of each of these parts of the Homeowner’s insurance coverage to help you better understand.
Dwelling – This is also known as Coverage A. This covers the home itself. There are different levels of coverage here, so be sure to get the coverage you need. Unfortunately, this is one of those situations where you get what you pay for. You are special and deserve a “special form” which is the best coverage you can get by comparison.
Forms are complicated insurance-speak but basically tell you what is covered we try to make sense of this visually with an easy to understand forms comparison. Please understand this is a tool for learning purposes and can vary, best to check to see how your policy works.
Other Structures – This covers detached garages, fences, sheds, and other structures that are not connected to the dwelling.
Personal Property – This covers your stuff. If you are not sure what is considered to be stuff, what would fall out of the house if you tuned it upside down, this is your personal property.
Loss of Use – This covers the expense or loss of income you would experience in the event that you had a loss and did not have use of the home.
Liability – Broadly defined, this covers the property damage and bodily injury caused to others because of your negligence. It also provides coverage for the lawyers that would defend you because of a liability claim.
Medical Payments – The best time to stop a lawsuit is before it happens, so insurance companies will typically pay for the medical costs (up to the limits of this coverage) of someone that get’s injured at your home. This is a “no-fault” coverage meaning the insurance company says, “hey, we will help you… but it might night be our fault.”
In addition to this coverage, there is supplemental coverage, which adds things like debris removal, fire department service charge, and lots of other fun goodies. There are also, many limitations and enhancements that a policy may have. In fact, some policies don’t package all this coverage together, so be sure to look at your policy for the coverage you have, and look around and the coverage you might need.