Division of Insurance - Homeowners Insurance

Types of Coverage

Homeowners (HO) policies provide a package of property and liability coverages tailored to meet the wants of most homeowners, renters, and condominium owners.

Section I includes five types of property coverages and Section II relates to liability coverages. Renters form (HO4) includes coverages C through F below.

Section I Coverages:

Coverage A

Dwelling Covers the dwelling and attached structures on the residence premise. The limit of liability listed in the declarations that applies to the dwelling is the most you will receive if your house is totally destroyed. The policy does not cover land.

Coverage B

Other Structures Applies to other structures on the residence premises that are not connected to the dwelling. The limit of liability for other structures will not be more than 10% of the limit of liability applied to Coverage A. The policy may be endorsed to provide additional coverage if the insurable value of all structures exceed the limit for Coverage B.

Coverage C

Personal Property Coverage C provides worldwide coverage to personal property owned or used by an insured. The limit of liability is typically 50% or 70% of the dwelling limit. There are special limits of liability for certain categories of personal property. These special limits do not increase the Coverage C limit of liability but rather represent sub-limits within the overall limit. If you have values in excess of these limits, increased limits or separate inland marine coverage can be arranged at added premium.

Coverage D

Loss of Use This coverage will provide additional living expenses up to the stated limit if a covered loss makes your residence not fit to live in.

Additional Coverages

There are additional coverages included for incidental exposures such as debris removal; reasonable repairs; trees, shrubs, other plants; fire department service charge; property removed; credit card, fund transfer card; forgery and counterfeit money; loss assessment; collapse; glass or safety glazing material; landlord’s furnishings; ordinance or law; and grave markers. Not all of the additional coverages are included in each homeowners policy form.

Section II Coverages:

Coverage E

Comprehensive Personal Liability Provides liability coverage if a claim is made or suit is brought against the insured for damages because of bodily injury or property damage caused by a covered occurrence on the insured premises and to the personal (non-business) activities of the named insured and members of the insured’s household anywhere in the world. Incidental business exposures may be added to the policy. Check with your agent if you need coverage for a business operation.

Coverage F

Medical Payments to Others Provides coverage for medical expenses that are incurred or medically ascertained for accidents to persons other than insureds on the insured location with the permission of an insured or under certain circumstances away from the insured location within three years from the date of an accident. The policy provides a maximum payment per person that is listed on the policy declarations page. Payment is made regardless of legal liability.

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Marcia Hultman

Cabinet Secretary