A. Coverage A – Dwelling. Dwelling coverage is the component of the homeowners policy that covers the repairing or rebuilding of your home in the event that it’s damaged or destroyed by a covered peril, such as fire, lightening, wind, or hail.
B. Coverage B – Other Structures. Other structures coverages is the component of the policy that covers the repairing or rebuilding of additional structures on your property besides your home in the event it is damaged or destroyed by a covered peril. Examples of other structures include a shed or detached garage.
C. Coverage C – Personal Property. Personal contents or personal property coverage refers to the portion of the policy that covers the costs of replacing your covered belongings within your home in the even they are damaged or destroyed in a covered peril.
D. Coverage D – Loss of Use. The portion of your standard home insurance policy that provides coverage for other living arrangements while your primary residence is being repaired or rebuilt is call loss of use coverage. This coverage reimburses you for living expenses, such as hotel costs and food while your home is uninhabitable.
E. Coverage E – Personal Liability Protection. To protect you and your covered family members from lawsuits brought against you by a third party. Examples of situations where personal liability protection comes to the rescue include being sued when your dog bites a friend or a delivery worker falls on your steps due to a faulty hand railing.
F. Coverage F – Medical Payments. In the event that someone is injured in your home or on your property but doesn’t sue, the medical payments portion of your home insurance policy will cover injuries sustained. This coverage component differs from the personal liability protection component in that medical payments coverage picks up when the injured party doesn’t sue, whereby the personal liability protection portion kicks in when the injured party sues you. There are coverage limits to the medical payments component, but homeowners can take out more coverage if desired.
Additional Property Coverages
In addition to these six main coverages described above, a standard homeowners insurance policy contains additional property coverages. These include debris removal, property removal, fire department fees, credit card theft charges, identity theft charges, building collapse, and damage to trees and shrubs.
For additional protection, endorsements can be added to a standard homeowners insurance policy. Examples of endorsement add-ons include guaranteed replacement cost coverage, extended replacement cost coverage, broadened theft protection coverage, secondary residence coverage, inflation guard coverage, expanded credit card theft and forgery coverage.
Typically, claims made from floods, earthquakes, war, and termites are excluded from a standard homeowners insurance policy, but special insurance riders can be added to ensure the homeowner is covered for these events.
Is Renters Insurance Necessary?
Renters insurance is necessary if you are renting a home or apartment and want to be sure your valuable possessions are protected from loss, theft or damage, and protects you in the event of liability claims as well.
You are not required to carry renters insurance by law, but a landlord can require renters insurance in your rental agreement in your lease. Carrying renters insurance protects you and the landlord by ensuring that no matter what happens on the premises, either your renters insurance or the landlord’s insurance will provide compensation.
As an example, what happens if a neighboring tenant leaves cooking unattended and starts an apartment fire that damages your unit and belongings? It’s possible that some combination of the neighbor tenant’s renters insurance, the landlord’s property insurance, and the personal property insurance in your renters policy will come into play to cover the cost of repairs.
What condo insurance covers
Most standard, individual condo or H06 insurance covers:
Personal property: Helps replace belongings stolen or lost in a covered incident (like a fire). Your stuff can even be protected on the go.
Personal liability: If someone is injured inside your unit, or you accidentally injure someone away from home, this helps protect your assets and savings.
Damage to unit structure: Unlike in an apartment, in a condo you own everything inside your unit's walls, like carpeting, ceilings, and countertops. So, it's up to you to insure them.
Additional living expenses: If your condo is damaged to the point that it's uninhabitable, this helps relocate you and pay living expenses while repairs are made.
Cost of condo insurance
Because your condo association covers the outside of the building, among other things, you don't have many of the worries or risks traditional homeowners do.
A typical condo insurance premium is determined using factors such as:
Types and amount of coverage you choose
Your personal claims history
Your credit rating
The value of your belongings
Most condo owners have a bevy of simple options to trim costs or score discounts. Buying multiple policies with the same insurer, installing security systems and smoke detectors, improving your credit, or raising your deductible can all result in savings.
Also ask us about the following additional coverages:
This reimburses you for your share of an assessment charged to all unit owners as a result of a covered loss. For instance, if there is a fire in the lobby, all the unit owners are charged the cost of repairing the loss.
This insures your property for damage by the back-up of sewers or drains. Water back-up may not always be included in a policy. Check to see that it is included.
This is an inexpensive way to get more liability protection and broader coverage than is included in a standard condo/co-op policy.
Renters insurance provides coverage for your lost, damaged, or stolen personal possessions. It also provides coverage for injuries to another person that might occur in your rented home or apartment. For example, if someone is hurt in your apartment, and the injury is deemed to be your fault, that person can file a liability claim with your insurance company to cover the costs associated with the injury.
If the injured person chooses to file a law suit against you, your renters liability insurance would pay for your legal defense, up to the limits set on your policy. If you do not have renters insurance, these costs would be your responsibility to pay out of pocket.
Renters insurance provides financial reimbursement to cover a tenant’s lost or damaged possessions as a result of fire, theft or vandalism.
Renters insurance can also provide compensation for alternative living arrangements in the event that your rental unit or rented home becomes uninhabitable due to storm damage or an apartment fire.
Renters insurance will help to pay your costs if you suffer a loss, such as a burglary. The amount of compensation you will receive depends on the type of loss and the amount of coverage you have in place. For example, you can buy “actual cash value” (depreciated) coverage for your personal property, or you can buy replacement cost coverage for your personal possessions.
Certain items such as jewelry, collectibles or other valuable items may have a value limit or require additional insurance coverage to provide full coverage for loss, theft or damage. You will also be responsible for a deductible, which is an out-of-pocket expense.