Understanding Homeowners Insurance Coverage A, B, C, D, E and F

Standard home insurance policies have six coverages: A (dwelling coverage), B (other structures), C (personal property), D (additional living expenses), E (personal liability) and F (medical payments). Each coverage serves a specific purpose, protecting the physical structure of your home, your personal belongings, liabilities and additional living expenses should you be displaced from your home due to a covered event.

By understanding each coverage type, you can ensure you have adequate protection against various risks and financial burdens that can arise from unexpected damages or losses to your property and possessions.

Dwelling coverage in homeowners insurance primarily focuses on protecting the physical structure of your home. Otherwise known as coverage A, it covers various integral parts of your house, ensuring you're covered in case of unexpected events.

Dwelling coverage is the top and most expensive out of the main homeowners insurance coverages because it should be able to cover rebuilding and repairs of your home’s structure from the ground up, ranging from $100,000 to more than $1 million. It covers the repairs of your home’s:

• Foundation
• Walls
• Roof
• Built-in Appliances
• Plumbing Systems
• Electrical Wirings
• HVAC Systems

For instance, when a storm severely damages your roof, causing a leak that affects your home's electrical wiring, your dwelling coverage would help cover the costs of repairing the roof and the affected electrical components, ensuring your home is safely restored to its original state.

Coverage B, or other structures coverage, is designed to protect structures on your property that are separate from your main home. This includes a variety of standalone structures that may be susceptible to damage, such as:

• Shed
• Gazebo
• Detached Garage
• Fences
• Driveways
• Mailboxes

Consider a situation where a tree falls during a heavy storm, damaging your detached garage and the fence surrounding your property. Other structures coverage would help cover the repair or replacement costs for these damaged structures, ensuring your property is restored to its pre-damage condition.

Home insurance covers swimming pools as well. However, the coverage details can vary with each policy and insurer, so it's important to check your specific policy. Pools attached to the house are covered by dwelling coverage, while detachable pools or above-ground pools fall under personal property or other structures. Additionally, personal liability coverage applies in case of injuries in the pool.

Personal property coverage, or coverage C, is designed to repair or replace damaged personal belongings in your home. This coverage extends to a wide range of items, including furniture, electronics, clothing and other valuable items, in the event they are damaged or lost due to various covered risks. In particular, personal property coverage pays for:

• Furniture
• Electronics
• Clothing
• Jewelry
• Appliances
• Books and Collectibles

For instance, if a pipe bursts in your home, causing extensive water damage that affects your electronics, furniture and clothing. In this case, personal property coverage would cover the costs of repairing or replacing these damaged items, ensuring your peace of mind.

Coverage D, also known as loss of use coverage in home insurance, provides financial assistance if your home becomes uninhabitable due to a covered event, covering additional living expenses incurred during repairs. In other words, it covers the costs for temporary accommodation and other expenses to maintain your lifestyle while your home is being repaired. It usually covers:

• Hotel Bills
• Restaurant Meals
• Pet Boarding
• Storage Costs
• Transportation

For example, if a fire severely damages your home, making it unlivable for several months during restoration, coverage D would help cover the costs of your stay in a hotel or rental space, daily meals since you can’t use your kitchen, storage for the things you were able to save, boarding for your pets and any extra commuting expenses.

Personal liability coverage, or coverage E in homeowners insurance, protects against claims arising from injuries or damage to others for which you may be held legally responsible. In particular, it pays for the following:

• Legal Fees
• Medical Bills Of Third Parties
• Property Damage To Third Parties
• Lost Wages To Third Parties

For instance, an icy driveway causes your neighbor to slip and fall, sustaining significant injuries. They decide to sue for medical expenses and lost wages due to the injury. In this case, coverage E on your home insurance would step in, covering the legal fees for your defense and any resulting damages you are found liable for.

Medical payments coverage, otherwise known as coverage F in homeowners insurance, is designed to cover medical expenses when someone is injured on your property, whoever is at fault. This coverage is particularly useful as it covers a variety of medical-related expenses, such as:

• Ambulance fees
• Hospital stays
• Laboratory tests
• Dental work

It's also important to note that this coverage can apply in certain situations outside your home, like if your dog bites someone while out for a walk. However, it does not extend to injuries sustained by you or regular household members.

If a friend, while visiting your home, accidentally trips on a loose floorboard and breaks their ankle, and their injury requires an ambulance ride and emergency medical treatment, your medical payments coverage would help cover these immediate expenses. This ensures prompt care for your friend without the need for legal involvement. It also quickly resolves minor, unintentional injuries occurring on your property.

Homeowners insurance policies involve many coverage types designed to protect your bottom line. By understanding each coverage, you can customize a homeowners insurance policy based on your exact needs. To help you understand better, we have answered the most frequently asked questions about homeowners insurance coverage A, B, C and more.