Types of Coverage
coverage a: dwelling/damage to house
Covers the structural components of your home. The face amount of the policy (for example $300,000) is the most you will receive if your house is totally destroyed.
coverage b: other structures
Covers damage to other structures or buildings, such as a detached garage, shed, or fencing.
coverage c: personal property
Covers damage to, or loss of personal property. Personal property includes household contents and other personal belongings used, owned or worn by you and your family.
coverage d: additional living expense
Covers additional living expenses when incurred. This means that the policy covers the necessary living expenses up to the stated limit, incurred by the insured to continue, as nearly as possible, the normal standard of living when the house cannot be occupied due to a covered loss.
coverage e: comprehensive personal liability
Covers personal liability. This coverage protects you against claims arising from accidents to others on property that you own or rent. With a few exceptions, such as auto or boating accidents, it is an all-purpose liability policy that follows you wherever you go.
coverage f: medical expense
Covers medical expenses. Coverage is limited to an amount per person and per accident for injuries occurring on your premises to persons other than an insured, or elsewhere, if caused by you, a member of your family, or your pets. An important feature of this coverage is that payment is made regardless of legal liability.
Renter's Insurance
A typical renters insurance policy provides three types of coverage: personal property coverage, renters liability insurance, and additional living expenses.
Imagine losing all your furniture, clothes and other belongings in a fire or other disaster. Renter’s insurance, like homeowner’s insurance, is meant to rescue you at these times of disaster. Yet only 37 percent of renters have insurance, according to the Insurance Information Institute.
actual cash value vs. replacement cost
It is important to understand the two ways your belongings may be replaced in the event of a covered loss. These two ways are Actual Cash Value and Replacement Cost.
Actual Cash Value (ACV) coverage will pay only for what your property was worth at the time it was damaged or stolen. Replacement cost coverage, on the other hand, will pay what it actually costs to replace the items you lost (minus the deductible).