Home Insurance

Generally, a homeowners insurance policy includes at least six different coverage parts. The names of the parts may vary by insurance company, but they typically are referred to as Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability and Medical Payments coverages. Thay are usually presented as policy sections and are often labeled Coverages A through F. This article discusses Coverage Parts A, B, and C, which protect property.

Coverage A - Dwelling: The homeowners policy's first coverage section protects your house and any attached structures, such as garages, decks or fences. The typical policy covers your home when it is damaged by many hazards (also known as perils or causes of loss) including fires or storms. However, the following causes of loss are usually excluded from coverage under the homeowners policy: Earthquake, Flood, Faulty maintenance, Damage from insects or vermin, Wear and Tear, gradual damage or deterioration.

Coverage B - Other Structures: This coverage section protects structures that are not attached to the home, such as a detached garage, storage or utility shed, playground equipment and swimming pools.

Coverage C - Personal Property: This covers your possessions, whether they are at your home or away with you on vacation. Personal property is...

Coverage D - Loss of Use: This coverage handles the cost of additional living expenses while your home is repaired. The coverage also applies if the home is unusable. However, the loss or loss of access has to be the result of an event that is covered by the policy. For instance, if your home were damaged during a war and you had to abandon it, Coverage D would not be available because war is excluded. Additional expenses normally include food, housing, and transportation. However, the expenses must exceed what your family normally incurs.

Coverage E - Personal Liability: This Coverage Part responds if you are legally responsible for causing property damage or physical injury. Protection includes paying for your defense costs and any financial judgement for covered incidents. Naturally the coverage would not apply for excluded situations, such as intentional injuries. Example: Joe is sued by a guy he injured during a brawl at a basketball game.

Coverage F - Medical Payments: This Part provides rapid reimbursement for minor injuries, such as a guest who trips and falls while visiting your home. This coverage does not apply to a family member. For example, if your child and your neighbor's child are both...