What's Covered In Homeowners Insurance? 
Let me add a few comments here on how the coverages are usually presented on a Declaration page of a Homeowners policy . First there is the party being insured and who the company is that is providing the insurance . Then there is a specific term for the coverage to begin and end . Then there are many ways to then itemize the coverage , but here are some basics . The policy is usually divided into two Sections . Section I deals with property insurance and Section II Liability Insurance , so within the section I coverages there are usually four parts Coverages A , B , C , D. Coverage A is the Dwelling Coverage . This can be sold on an Actual cash value basis -LRB- very infrequently , but watch out for it -RRB- usually on a 100 % of the dollar value of the estimated cost to replace the house itself . This is often difficult for consumers to understand , but no one really cares about the market value . What is important is the replacement cost and replacing one house destroyed is usually a lot more expensive then building one new in a subdivision . Make sure you have enough coverage . This is not an exact science so many companies offer extensions to increase the coverage beyond the stated value . Next is Coverage B : These are the other structures appurtenant , outbuildings , fences , Gazebos unattached garages etc. . Coverage C is usually Personal Property or Contents Coverage . This is very important to understand : You want replacement cost coverage not Actual Cash Value , ACV . The easiest way to think of this is the ten your old large and 200 lb TV . The ACV is going to be next to nothing . There is no continuing interest in buying that type TV anywhere . But replacing it with a new TV with light weight plasma features is what you want . Coverage D is Additional Living Expense . This can be stated two different ways or a mixture of the two . Some companies list a maximum dollar limit available . Others list a maximum time limit and still others list a maximum time limit and dollar limit . This covers the additional cost of living elsewhere while your home is reconstructed . It can also come into play if a Governmental authority wo n't let you near your home for safety reasons -LRB- i.e. forced evacuation form an impending hurricane -RRB- . This coverage does not pick up the cost of things you would normally pay out of pocket , but the additional things and costs necessary to keep your household going while your home is repaired . The next set of coverages comprise Section II or liability coverage . Coverage E is very broad and covers such things as an injury to a child by your dog , or an inadvertent collapse of you deck with guests on it etc. . Coverage E then is is sold in increments of 100,000 usually . The difference in price from say 300,000 to 500,000 is usually only a few dollars a year . If you have an umbrella policy , you may be required to carry a minimum of 500,000 in coverage . Coverage F is Medical payments coverage . This is usually quite nominal and is used to cover minor incidents where fault may not be much of an issue , but you feel obliged to pay for the medical bill . For example a neighbor picks up your mail for you while you are gone and trips on your garden hose . The injuries are not serious , but do require a couple stitches . The limit is low because the much more serious incidents would require negligence or absolute liability and would fall under Coverage E. I hope this helps . If you are in AZ.CA , TX , MO , or GA we 'll be glad to assist you with placing your homeowners coverage . 