Home Insurance Coverage

Section I – Property Coverage

Coverage A – Dwelling

Coverage B – Other Structures

Coverage C – Personal Property

Coverage D – Loss Of Use

Section II – Liability Coverage

Coverage E – Personal Liability

Coverage F – Medical Payments To Others

Section I.

Coverage A – Coverage A provides property insurance on the owner – occupied dwelling used for residential purposes. The location of the residence premises is identified in the declarations page of the insurance policy. This section of coverage, as the policy actually states, provides protection "against loss to any dwelling or structure attached to the dwelling; and materials and supplies located on or next to the described premises used to construct, alter or repair the dwelling or other structures on the residence premises".

Coverage B – This coverage area provides a specific limit of insurance coverage for detached structures on the residence premises. An automatic limit of 10% of the Coverage A amount is provided for other structures. (Please refer to the Definitions section of the homeowners policy for an explanation of Detached Structures).

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Coverage C – As the policy states, this coverage area protects all the unscheduled personal property of any named insured while it is located in any part of the world. Coverage is provided for personal property anywhere in the world with one exception. This exception involves coverage on personal property located at a secondary residence (i.e. summer home), which is limited to the greater of 10% of the Coverage C amount or $1000. The policy also includes "Special Limits of Liability" for certain types of property. These are items that will receive limited coverage if they are not scheduled.

There are several property exclusions applicable to Coverage C as well. For example, the policy does not cover loss to autos, itemized articles insured separately, or property belonging to a tenant not related to an insured. In fact, the exclusion for damage to autos or motor vehicles includes "all motorized land conveyances" such as a snowmobile or other recreational type (motorized) vehicles. However the policy does cover vehicles or conveyances not subject to motor vehicle registration, which are designed to assist the handicapped. In addition, this policy will not cover a stereo or radio that is permanently installed in an auto. This would be covered by an auto policy. Other personal effects that are stolen while in an auto would be covered as personal property anywhere in the world.

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Coverage D – This coverage area is referred to as loss of use. It is considered to be an indirect loss type of coverage. Its principal coverage pays if the insured incurs additional expenses, beyond normal living expenses, while living at another location if the residence premise is unlivable due to a covered loss. It includes both additional living expenses and fair rental value. Remember, expenses incurred beyond an insured’s normal monthly living expense will be paid.

Section II.

Coverage E – This coverage protects the insured if a legal suit is brought against him or her as a result of legal responsibility for Bodily Injury or Property Damage to others. The initial coverage limit available is $100,000 but can be increased. This coverage protects an insured if another person is injured on any insured location. It also would protect the insured, spouse and family who is legally responsible for the Bodily Injury or Property Damage to others arising out of personal, nonbusiness activities. Supplementary payments for legal defense costs are also provided.

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Coverage F – This coverage states that the insurer will pay the necessary medical expenses incurred within three years of an accident causing Bodily Injury to others arising from an insured location or as a result of the personal activities of any insured. The limit provided by the policy is $1000 per person and may be increased. (Please see the definitions section of the policy for an explanation of Medical expenses).

Damage to the property of others is also provided for up to $500. In addition, claim expenses and first aid expenses are also covered under this section. However, under no circumstances will the insurer pay for intentional injury or damage as defined by the policy

This is just a basic explanation of the coverages provided by a homeowners insurance policy. For a more in depth explanation please contact any one of our offices.

Remember, a homeowner policy can be tailored to cover the needs of every individual. It is important that all the information that is given to us at the time of application is accurate in order to make sure that you will be protected in the event of a loss.

Disclaimer

Remember that this guide is not meant to be a substitute for the Homeowner insurance policy mailed to you.

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