A Homeowner Policy is made up of several different coverages that protect the home, personal belongings, and liability exposures. Not all insurance companies offer the same coverage and optional coverage. This guide is provided to assist you in understanding the components of the personal homeowner policy.  Your agent can bring additional details to help you with making decisions and customizing your policy.

The exact coverage can vary by company and policy form, but the most common coverages are:

Coverage A – Dwelling

Protects the structure of the home itself, including:

• Walls
• Roof
• Built-in appliances
• Attached structures (garage, deck)

This coverage is usually based on the estimated cost to rebuild the home.

Coverage B – Other Structures

Protects structures not attached to the home, such as:

• Detached garages
• Fences
• Sheds
• Gazebos

Typically written as a percentage of Coverage A.

Coverage C – Personal Property

Covers personal belongings inside the home, including:

• Furniture
• Clothing
• Electronics
• Appliances

Coverage applies to theft, fire, and other covered perils, even when items are away from home in some cases.

Coverage D – Loss of Use / Additional Living Expense (ALE)

Pays for temporary living expenses if the home becomes uninhabitable due to a covered loss. Examples:

• Hotel stays
• Restaurant meals
• Temporary rental housing

Coverage E – Personal Liability

Provides protection if the insured is legally responsible for bodily injury or property damage to others. Examples:

• Someone slips and falls on the property
• Accidental damage to another person’s property

Can help pay:

• Legal defense costs
• Court judgments
• Settlements

Coverage F – Medical Payments to Others

Pays minor medical expenses for guests injured on the property regardless of fault. Examples:

• Ambulance bills
• X-rays
• Emergency room visits

Usually lower limits such as $1,000–$5,000.

Common Optional Endorsements / Additional Coverages

Water Backup Coverage

Covers damage from:

• Sump pump overflow
• Sewer or drain backup

Scheduled Personal Property

Provides additional coverage for high-value items such as:

• Jewelry
• Firearms
• Fine art
• Collectibles

Identity Theft Protection

Helps with expenses related to identity fraud restoration.

Equipment Breakdown

Covers sudden mechanical or electrical breakdown of home systems/appliances.

Service Line Coverage

Protects underground utility lines:

• Water
• Sewer
• Electrical
• Gas lines

Ordinance or Law Coverage

Pays increased costs to rebuild to current building codes after a loss.

Home Cyber Protection

Pays in the event of a cyber attack.  

Undamaged Siding or Roofing

Pays when a portion of siding or roofing is damaged and similar siding or roofing material is no longer available.

Interior Matching Protection

Pays when a portion of an interior feature is damaged and similar material is no longer available.

Flood Insurance

Not covered under standard homeowners policies. Requires:

• Separate NFIP policy or private flood policy.

Earthquake Coverage

Usually excluded and must be added separately in many states.