What is covered under my homeowners policy?

Answer:
Homeowners policies have several critical components

that no homeowner should be without. There are the obvious coverages that most people immediately think about when homeowners insurance comes up… but there are others that aren’t as thoroughly discussed or known about.

Dwelling and appurtenant structures. The “dwelling” part of your homeowners policy covers your home itself. An appurtenant structure could be another independent outbuilding such as a barn or detached garage. Your dwelling coverage limits usually dictates the amount of total coverage you’ll have on other buildings as well. For instance—a $200,000 limit on a homeowners plan may mean you’ll be eligible to receive up to $20,000 on your detached garage.

Contents coverage. This coverage applies to all of your worldly possession that aren’t, basically, nailed down. The general rule of thumb is that if you’ll bring it with you when you move—it’s considered contents. The dwelling limit will dictate the potential reimbursement you’ll receive for contents as well.

Homeowners liability coverage. This reimburses claimants who are injured as a result of your negligence.

Additional Living Expenses (ALE). This coverage reimburses you up to a certain limit when you’ve lost the use of your primary residence as the result of a covered loss. It will pay for meals, hotels, or perhaps rental of an apartment for a certain length of time.

There are other coverages as well that offer “special limits” on certain types of property like computer equipment, cash, jewelry, art work etc. Coverage for these items can be adjusted through the use of endorsements and floaters purchased through the insurance company.


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