The homeowners policy contains two sections. Section I provides property coverages (A, B, C and D) while Section II provides liability coverages (E and F). A brief description of the individual coverages follows:
- Coverage A - Dwelling
- Coverage B - Other Structures
- Coverage C - Personal Property
- Coverage D - Loss of Use
- Coverage E - Personal Liability
- Coverage F - Medical Payments to Others
Coverage A - Dwelling
Coverage A provides major property coverage that protects your house and attached structures if it is damaged by a covered peril.
Coverage B - Other Structures
This coverage provides protections to other structures on the residence premises that are not attached to the dwelling. Items covered include detached garages, tool sheds, etc. Coverage B is normally limited to 10% of the coverage A limit. However, you may purchase more coverage for an additional premium.
Coverage C - Personal Property
This coverage provides protection for the contents of your home and other personal belongings owned by you and other family members who live with you. Coverage C is normally 50% of coverage A or is subject to an established amount agreed upon by you and the insurance company.
Coverage is limited on certain types of property that are especially susceptible to loss, such as:
- Jewelry
- Furs
- Fine Arts
- Silverware
- Antiques
- Collectibles
- Firearms
- Money
Additional amounts of insurance may be purchased. You may want to consider scheduling these items separately. Ask your agent for specifics.
Coverage D - Loss of Use
This coverage will help with additional living expenses if your home is damaged by a peril insured against to the extent that you cannot live in your home. These expenses include, but are not limited to, housing, meals and warehouse storage. Coverage D is normally limited to 20 percent of Coverage A.
Coverage E - Personal Liability
This section of the homeowners policy will provide coverage in the event you or a resident of your household are legally responsible for injury to others. Coverage E normally provides a defense and will pay damages, as the insurance company deems appropriate. There are some exceptions. The liability coverage will not protect you in all situations, such as an intentional act. All of the exclusions and specific language can be found in your policy.
Coverage F - Medical Payments to Others
This coverage pays for reasonable medical expenses for persons accidentally injured on your property. For example, if a neighbor's child is injured while playing in your home, the medical payments portion of your homeowner's policy may pay for necessary medical expenses. medical payments coverage does not apply to your injuries or injuries of those who reside in your household. It is not a substitute for health insurance. Business activities are also excluded. All of the exclusions and specific language can be found in your policy.
Perils Generally Covered by a Homeowners Policy if Damage is caused by:
- Fire or lighting
- Windstorm or hail
- Explosion
- Riot or civil commotion
- Aircraft
- Vehicles
- Smoke
- Vandalism & malicious mischief
- Theft
- Volcanic eruption
- Falling objects
- Weight of ice, snow, sleet
- Sudden & accidental water damage
- Breakage of glass
Perils Generally not covered by a Homeowners Policy if Damage is caused by:
- Flood
- Earthquake
- Earth movement
- Termites
- Insects, rats or mice
- Water damage cause by seepage or leaks
- Losses to house vacant for 60 days or more
- Mold
- Wear and tear or maintenance
- War
- Insurrection
- Tidal wave
- Neglect
- Nuclear hazard
Important: Read exclusions in your insurance contract.
Earthquake, flood, mold, earth movement, and "wear and tear" are some of the perils that are usually excluded. When an insurer writes your homeowners coverage, the insurer is legally obligated to offer you earthquake coverage for an additional premium. The earthquake coverage may be written directly by the homeowner's insurer, by a separate insurer, or through the California Earthquake Authority (CEA).
You may elect to buy specialized homeowners coverage that provides additional protection for your dwelling and contents beyond the standard coverage limitations in most homeowner's policies. Ask your insurance agent or broker about available endorsements to extend coverage. Endorsements to coverage such as building code upgrade can greatly add to your protection in a loss.
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