Q: What does a standard home insurance policy cover?

A: When shopping for home insurance, you should know about the six basic types of coverage:

  1. Coverage A - Dwelling
  2. Coverage B - Other Structures on Your Property
  3. Coverage C - Personal Property/Contents
  4. Coverage D - Loss of Use
  5. Coverage E - Personal Liability Protection
  6. Coverage F - Medical Payments

Dwelling protects against the damage and possible loss of your home in the event of a covered claim such as a hurricane, hail, lightening or fire. (Separate policies are needed for flood and earthquake insurance.) Learn more about dwelling coverage.

Other Structures that are protected by a standard home insurance policy are detached garages and other detached buildings on your property. The typical coverage for other structures is 10% of dwelling coverage-although higher amounts may be purchased if necessary. Learn more about other structures coverage.

Personal Property is included in a standard home insurance policy and protects your personal items and household contents in the case they are stolen or destroyed by fire, hurricane or other peril covered in your policy. These items may include, but are not limited to, furniture, clothing, and sports equipment. Learn more about personal property coverage.

Loss of Use coverage provides for your living expenses in the event that you cannot live in your home due to a covered claim. This type of coverage typically covers hotel and restaurant bills and other living expenses you may incur while your home is being repaired. Learn more about Loss of Use coverage.

Personal Liability Protection covers you in the event that a lawsuit is presented against you or covered family members for bodily injury or property damage. Your pets are also included in this portion of your policy protecting you against bodily harm or property damage that they may cause to others. Learn more about personal liability protection.

Medical Payments coverage (often referred to as MedPay) helps cover medical expenses that you might be held responsible for due to an injury sustained on your premises when there is no lawsuit. Learn more about MedPay.

The Way to Affordable Homeowners Insurance

Getting an affordable policy for your house requires that you not only understand what goes into a homeowners policy, but that you also understand the value of your own house and what you need to cover your house.

How Much Is Your House Worth?

If you’re a new homeowner, you probably think the amount you paid for the house is the amount you should get covered for. But there are more factors to consider when it comes to a homeowners policy. House Insurance Local can help you understand the difference between the actual cash value of your house and the replacement cost. Want a hint? Actual cash value factors depreciation into the value of your house, while replacement cost covers the cost of repairing and/or replacing damaged parts of your house, which can be more than the depreciated value. You also need to consider the other property you own in your house, such as furniture, appliances, clothing, and more.

What Are the Risk Factors of Your House?

The type of coverage you need also affects the affordability of your homeowners policy. House Insurance Local can help you find out what is commonly covered by a policy, and what you may need to get as additional coverage. Do you live in an area prone to earthquakes? Then you will need additional coverage. The same goes for floods. Do you have an old roof that could cause leaks and water damage? That could increase your premium.