Your homeowners policy is actually six coverages bundled into one policy. Understanding each one helps you know when you're protected and when you're not.
Coverage A: Dwelling (Your House)
This covers the physical structure of your home — walls, roof, foundation, attached garage, built-in appliances, and permanently installed fixtures.
- What's covered: Fire, lightning, windstorm, hail, explosion, smoke, vandalism, theft, falling objects, weight of ice/snow, accidental water damage from plumbing
- What's NOT covered: Floods, earthquakes, foundation settling, termites, mold (usually), normal wear and tear
- How much: Should equal the replacement cost of rebuilding your home (NOT market value)
Coverage B: Other Structures
Covers structures on your property that aren't attached to your house:
- Detached garage, shed, workshop
- Fence, retaining wall, driveway
- Pool, hot tub, gazebo
- Typically: 10% of your dwelling coverage amount
Coverage C: Personal Property (Your Stuff)
Covers your belongings — furniture, electronics, clothing, appliances, and more:
- Covered: Theft, fire, vandalism, and other covered perils — even away from home
- Sub-limits: Jewelry ($1,500-$2,500), cash ($200), firearms ($2,500), silverware ($2,500)
- High-value items: Schedule expensive jewelry, art, and collectibles separately
- Typically: 50-70% of your dwelling coverage amount
- Important: Choose replacement cost over actual cash value for personal property
Coverage D: Loss of Use / Additional Living Expenses
If a covered loss makes your home uninhabitable, this pays for:
- Hotel or temporary rental costs
- Restaurant meals (above your normal food budget)
- Laundry, storage, and other reasonable expenses
- Duration: Until your home is repaired or you permanently relocate
- Typically: 20-30% of your dwelling coverage amount
Coverage E: Personal Liability
Protects you if someone is injured on your property or you damage someone else's property:
- Guest slips and falls on your property
- Your dog bites a neighbor
- Your child accidentally damages someone's property
- Lawsuits and legal defense costs
- Standard limit: $100,000-$300,000 (consider umbrella insurance for more)
Coverage F: Medical Payments to Others
- Pays medical bills for guests injured on your property — regardless of fault
- Covers immediate medical expenses without a lawsuit
- Standard limit: $1,000-$5,000 per person
- Does NOT cover injuries to you or your household members
What Homeowners Insurance Does NOT Cover
- Floods: Requires separate flood insurance
- Earthquakes: Requires separate earthquake policy or endorsement
- Sewer/drain backup: Requires endorsement (typically $50-$100/year — worth it)
- Maintenance issues: Mold from neglected leaks, pest damage, gradual deterioration
- Home business: Business equipment and liability usually excluded
- Certain dog breeds: Some carriers exclude specific breeds
- Trampoline/pool: Some carriers exclude or require fencing
Bottom line: Your homeowners policy is powerful protection — but it has critical gaps. Understanding what's covered (and what's not) helps you avoid expensive surprises when you need to file a claim. An independent agent shopping 50+ carriers can find the best coverage for your specific situation.