A standard homeowners insurance policy provides coverage to repair or replace your home and its contents in the event of damage. This usually includes damage caused by fire, smoke, theft or acts of vandalism, or damage caused by a weather phenomenon, such as lightning, wind or hail. A homeowners insurance policy usually includes at least six different parts of coverage. The names of the parties may vary by insurance company, but are usually referred to as coverage for housing, other structures, personal property, loss of use, personal liability, and medical payments.
They are usually presented as sections of the policy and are often referred to as Coverages from A to F. Talk to your agent to schedule (add) coverage into a floating program that expands and extends coverage for high-value assets. The most important coverage generally offered is full coverage of the cost of replacing the roof, with no deduction for depreciation. If you have significant assets and want more coverage than what your homeowners policy offers, consider purchasing a general liability or excessive liability policy, which offers broader coverage and higher liability limits.
You can also purchase additional liability coverage and medical payments coverage for a nominal premium. Parts E and F of coverage address coverage for injuries to people or damage to property that belongs to other people. Coverage A provides important property coverage that protects your home and attached structures if they are damaged by certain events. A multi-risk policy offers numerous advantages to consumers, since it conveniently brings together a range of coverages in a single policy and is generally cheaper than if all the coverages will be purchased individually.
Section I provides property coverage (A, B, C, and D), while Section II provides liability coverage (E and F).