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Your home insurance policy is a package, which is composed of 6 different coverages (A through F).

• Coverage A - Covers damage to the interior and exterior of your home. Selecting the value to insure your home for isn't a simple task. Your goal is to insure your home for the amount it takes to rebuild it, not its current market value. Therefore, it’s always best to work with a professional who can help you calculate the replacement cost value on your home.
• Coverage B - Coverage for other structures on your property. Other structures include detached garages, work sheds, pool houses, fencing, etc... A standard insurance policy has coverage for other structures at only 10% to 20% of Coverage A. Meaning if your home is insured for $250,000, your total coverage for other structures would be $25,000 or $50,000. It may seem like a lot but if you have both a shed and detached garage, the damage can easily exceed coverage limits. Therefore, it’s important notjust to assume the standard coverage B amount is enough.
• Coverage C - Coverage for your personal property, which is typically around 50% of coverage A. What’s considered personal property? The simplest way I know of explaining personal property is anything not attached to a wall. Therefore, if you turned your house upside down and shook it until everything came up, that’s your personal property (furniture, electronics, collections, clothes, etc...) Even though some policies cover you up to 50% of coverage A, many items are excluded above a certain amount. For example, jewelry is considered personal property, although any piece above $1,000, or may not be covered. To cover the more expensive items such as jewelry, fur, collections you need to schedule them separately. As mentioned, most policies cover your personal property for actual cash value, even if you have replacement cost for coverage A.
• Coverage D - Coverage for additional living expenses you would incur if your home wasn’t livable due to loss.
• Coverage E - Personal liability coverage which protects you against losses to others when you’re at fault. lf someone were to file a lawsuit against you, coverage E would help pay for the defense and damage up the amount listed in your policy.
• Coverage F – Coverage for medical expenses for persons other than the insured, that occurred on your property.

Additional Coverages You Can Purchases

• Flood Insurance - One of the biggest misconceptions about home insurance is that it covers losses due to flood. Unfortunately, many people have found this out the hard way. Adding on a flood insurance policy is inexpensive compared to the protection and peace of mind it provides.
• Earthquake Insurance - Standard insurance policies exclude earthquake insurance. However, most carriers allow you to purchase the upgrade. The cost of earthquake insurance will vary depending on where you live.
• Scheduled Personal Property - A standard homeowners policy covers valuable possessions such as jewelry, fine art, furs but only up to a certain amount. Typically, around $1,000 to $2,000 per item. If you have an item over that amount you want insured, you need to list that separately on the policy.
• Personal Umbrella Insurance - A personal umbrella is an option you can take to extend your liability limits. Coverage begins when your current auto or home insurance limits have been exhausted.