Home insurance protects what is typically the biggest investment you’ll make: Your house. A homeowners policy offers the following types of coverage:
– Coverage A – Dwelling
– Coverage B- Other Structures not attached to home
– Coverage C – Personal Property
– Coverage D: Additional Living Expenses
– Coverage E: Liability against bodily injury or property damage claims
The coverage types within a policy are often set as a percentage of the dwelling’s coverage amount; therefore, Coverage B is generally 10% of dwelling amount, Coverage C is generally 50% of dwelling amount and Coverage D is generally 20% of dwelling amount.
Homeowners insurance does not cover earthquakes or floods – you’ll need to buy separate policies for those perils.