What coverages are included in a homeowners policy?

Your home is your most valuable investment so it only makes sense to protect that investment with insurance. But what does that insurance cover?

The standard homeowners policy is divided into two sections:

  • Section I: Property Coverages
  • Section II: Liability Coverages

Section I: Property Coverages

There are four coverages in Section I:

  1. Coverage A – Dwelling provides protection for your home and the structures attached to your home.
  2. Coverage B – Other Structures covers the structures other than your home located on your property such as a detached garage or shed.
  3. Coverage C – Personal Property covers the contents of your home such as furniture, appliances, clothing, and toys.
  4. Coverage D – Loss of Use provides coverage for additional living expenses when you "lose" the use of your home due to a covered loss.

It's important to note that not all causes of loss are covered on the standard homeowners policy. For example, flood damage is not covered by typical homeowners policies. Homeowners policies are designed to provide coverage for exposures that most homeowners will incur. This helps keep the cost of insurance affordable.

Section II: Liability Coverage

There are two coverages in Section II:

  1. Personal Liability Coverage provides coverage when you are liable for bodily injury or property damage to others. It also covers injury or damages to others caused by any relatives living with you.
  2. Medical Payments covers medical bills incurred by people invited to your home who are injured on your property or as a result of your personal activities.

Just as every home is different, so is every insurance policy. To ask questions and learn more about what coverages you need to protect your home, contact your local independent insurance agent today!

Watch this video for more on homeowners coverages.

For additional videos, please visit our Video Library

Additional Information

The I’s of Insurance: Your Homeowners Coverage
My Homeowners Policy and Insurance to Value