Dwelling. The primary reason for home insurance is to cover your home. This part of your policy describes how much coverage you have for repairing or replacing your damaged or destroyed home. It also covers attachments, such as a garage or deck. Most homeowner policies provide replacement coverage, meaning they pay the actual cost to replace your home up to the limit of your policy. Some policies offer guaranteed replacement cost, which means the company will pay the full cost to replace your home, even if it is above your policy limit. Make sure your review your policy at least once a year and contact your agent to be sure you have enough coverage.

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Other Structures. Most homeowner policies include coverage for repairing or replacing other permanent, separate, unattached structures on your property, like a detached garage, workshop or attached fence. The coverage amount is usually 10 percent of your dwelling limits. If you have multiple structures, rent out any of them, or use them for a home business, talk to our agent about getting additional coverage.

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Personal Property. This part of your policy includes coverage for your furnishings and personal items, such as your TV, stereo, clothing, dishes, etc. The policy will cover your property for the used value (or Actual Cash Value).

 

If you want to be reimbursed the full value of your property, you’ll need to buy replacement cost coverage. This coverage generally costs about 10 percent more. The insurance company will initially pay you for the used value of your property. Once you submit the receipt for replacement, they’ll pay you the difference between the actual cash value and how much you spent to replace the property with a comparable item.

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Personal property coverage extends worldwide, but you may have a reduced limit of coverage for all personal property you take with you while you’re on vacation or any personal property you keep at a secondary residence. Ask your agent about buying additional coverage. Your policy may include limited coverage for specific personal property, such as jewelry, collectibles, art, silver, etc. If you have these types of items, you should talk to your agent about buying additional coverage or increasing your limits. Homeowner policies do have exclusions. For example, they won’t cover a roommate’s or renter’s property, autos, or large boats. Be sure to check your policy for any exclusions.

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Loss of use or additional living expenses. This part of your policy pays for additional living expenses if your house is damaged or destroyed and you need another place to stay. This coverage is usually 20 percent of your dwelling limit and doesn’t include normal cost-of-living expenses, such as your house payment or utility bills.

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Medical Payments. This coverage, also called “good neighbor” coverage, pays the medical expenses of others when they are accidentally injured on your property. Most policies include at least $1,000 of coverage, but you can get higher limits. Generally, this coverage only applies to guests on your property with your permission. 

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Liability. Most homeowner policies included liability coverage that pay expenses for bodily injury and property damage sustained by others when you are legally liable. For example, if you knew you had a loose deck railing and someone leaned on it, and fell off and was hurt, you can be held liable. Most policies include at least $100,000 of coverage, but higher limits may be available. When deciding how much coverage to buy, think about the value of your total assets, and how much you might lose if someone successfully sued you for damages. 

 

Personal liability coverage extends beyond your property limits. If an incident occurs involving family members who live with you (as defined in your policy) at other locations, it will cover the liability of your family members. For example, it may provide coverage if your minor child damages a neighbor’s property.