Get Confident in Your Homeowners Coverages
A standard homeowners policy has the following coverages available for purchase. When shopping for homeowners insurance and looking for a policy, it’s important to understand exactly how you’re protected:
Coverage A: Dwelling
Pays to rebuild or repair your home.
Dwelling coverage provides protection in the event your home and attached structures are damaged — including the home itself and all of its mechanical and electrical systems. Keep in mind, it’s in your best interest to buy enough dwelling coverage to cover the cost to rebuild your home.
Coverage B: Other Structures
Pays for damage to detached structures on your property, such as detached garages, gazebos, sheds and fences.
If you select other structures for your property, you’re covered for the same types of hazards that your home is covered for, such as damages from things like vandalism, fire, wind and hail.
Coverage C: Personal Property
Covers your personal belongings, including furniture, clothing and appliances, if they're stolen, damaged or destroyed.
Personal property coverage provides worldwide protection for your belongings (e.g. furniture, electronics, clothing, appliances, etc.). You can add higher levels of coverage when you schedule your more valuable assets, like jewelry or musical instruments.
Your personal property coverage comes with limits, and understanding those limits will help you determine if you need to itemize certain items. This means you can pick and choose items, typically higher-value belongings, and opt to have higher levels of coverage. Another benefit of itemizing your property is having “open peril” coverage, which gives you a broader range of coverage, such as accidental loss. Imagine losing your special diamond ring while out on the town with friends. Your standard policy wouldn’t cover the cost to replace your ring, but if you itemized your ring, you’d be able to replace your ring up to the limit listed on your policy.
Coverage D: Loss of Use (Additional Living Expense)
Pays for additional living expenses if your home is uninhabitable due to a covered loss.
If damage caused by a covered peril occurs to your home, you may need to temporarily relocate. In order to maintain your same standard of living, loss of use coverage helps pay for things like a hotel, food, transportation and other costs of living while repairs are being made.
Coverage E: Personal Liability
Protects you against financial loss if you're legally responsible for someone else’s injury or property damage.
Personal liability on your homeowners policy protects you against lawsuits by others alleging bodily injury or property damage.
Coverage F: Medical Expense
Covers medical payments to others for injuries caused by you or damages that happen on your property, regardless of your legal responsibility.
For instance, if your neighbor falls on your icy sidewalk and is injured, you might have to pay for costly hospital and medical bills. The medical expense coverage on your homeowners policy helps cover these costs.
It’s important to know that there are limits on your standard policy and you’re covered up to a certain amount. What if expenses go above your primary policy limits? You’d be responsible for paying the remaining costs out of pocket! That’s why having personal umbrella liability insurance is such a good idea — it’s an added layer of coverage over many types of your policies, including home and auto. This way, if you face a substantial claim or lawsuit, umbrella insurance will help pay the outstanding costs and you don’t have to dig into your life savings or sell off your hard-earned assets.
Take a look at our homeowners insurance overview page to learn more about your coverage options with American Family Insurance.