What Are These Different Coverages Listed In My Insurance Policy?
By Will Davich, Esq.
A hurricane, or some other peril, has just damaged your house and it is time to make an insurance claim. Hopefully you followed the often repeated advice of emergency response officials and safely stored and secured a copy of your homeowner’s insurance policy. Accordingly, you start reading your policy and declarations page (maybe for the first time ever) to understand the coverage(s) you have and you realize the insurance company has made the policy and declarations page as difficult to read as possible.
After diligently scanning the documents you find the following information on the declarations page (the below dollar figures are purely hypothetical for the purpose of demonstration):
Section I – Property Coverages
- Coverage A: $300,000.00
- Coverage B: $40,000.00
- Coverage C: $75,000.00
- Coverage D: $50,000.00
Now that you have found the above information, your next thought is likely: “What exactly does that mean?”
This article will give a brief overview and explanation of the standard Section I – Property Coverages contained in a typical single family homeowner’s insurance policy and will explain what coverages the homeowner is entitled to in the above hypothetical scenario.
Coverage A
Coverage A, in a standard homeowner’s insurance policy, is the coverage that is afforded to the actual dwelling structure or, in lay terms, the physical home. This is coverage for damages to items such as the flooring, roof, drywall, and cabinets as well as damages that have compromised the structural integrity of the home (for example, a beam that has been displaced). The above hypothetical homeowner would have coverage for repairs to the dwelling structure, subject to any policy exclusions or limitations, in the amount of $300,000.00.
Coverage B
Coverage B, in a standard homeowner’s insurance policy, is the coverage that is afforded to “other structures” that are not attached to the home. This is coverage for damages to items such as fences and sheds and any other various structures that are not attached to the home. Bear in mind that a garage which is attached to the home would likely be covered under Coverage A. The above hypothetical homeowner would have coverage for repairs or replacement of “other structures”, subject to any policy exclusions or limitations, in the amount of $40,000.00.
Coverage C
Coverage C, in a standard homeowner’s insurance policy, is the coverage that is afforded to personal property. This is coverage for damages to items such as a sofa, television, area rug, kitchen table, clothing, etc. However, a custom cabinet and counter top which were installed into the master bathroom would likely be covered under Coverage A. The above hypothetical homeowner would have coverage for repairs or replacement of “personal property”, subject to any policy exclusions or limitations, in the amount of $75,000.00.
Coverage D
Coverage D, in a standard homeowner’s insurance policy, is the coverage that is afforded to the policy holder for additional living expenses or, in the case of a rental property, lost rent as the result of a covered loss. This is coverage for the cost incurred by a policy holder to acquire alternative living arrangements in the event the home is unlivable or, in the case of a rental property, the rent that is lost because the home is not rentable as a result of the covered loss. The above hypothetical homeowner would have coverage for alternative living expenses/loss of use, subject to any policy exclusions or limitations, in the amount of $50,000.00.
If you have questions about your insurance policy’s coverages, please call our experienced attorneys at Cohen Law Group. We’re happy to assist you.
Will Davich, Esq.
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