🏠 Coverage A: Dwelling Coverage

What It Covers: The physical structure of your home, including walls, roof, foundation, and attached structures like garages.

How Much You Need: Should equal the cost to rebuild your home (not market value). Most experts recommend coverage equal to 100% of your home’s replacement cost.

What’s NOT Covered: Land value, detached structures, earthquakes, floods, normal wear and tear, intentional damage.

Types of Dwelling Coverage:

• Replacement Cost: Pays to rebuild at current costs without depreciation
• Actual Cash Value: Replacement cost minus depreciation (lower premiums, less coverage)
• Extended Replacement Cost: Covers 125-150% of dwelling limit for unexpected cost increases
• Guaranteed Replacement Cost: Pays full rebuilding costs even if exceeds policy limits (rarely available)

🛋️ Coverage B: Other Structures

What It Covers: Detached structures on your property like sheds, fences, detached garages, gazebos, and standalone workshops.

How Much You Need: Typically 10% of your dwelling coverage. For a $300,000 dwelling policy, you’d have $30,000 for other structures.

Common Claims: Wind damage to fences, tree falling on shed, fire damage to detached garage.

Pro Tip: If you have expensive detached structures, consider increasing this coverage beyond the standard 10%.

👕 Coverage C: Personal Property

What It Covers: Your belongings including furniture, clothing, electronics, appliances, and personal items both inside and outside your home.

How Much You Need: Typically 50-70% of your dwelling coverage. For a $300,000 dwelling policy, you’d have $150,000-$210,000 for personal property.

Special Limits Apply To:

• Jewelry ($1,500 limit typical)
• Cash and coins ($200-$500 limit)
• Firearms ($2,500 limit typical)
• Collectibles and art ($2,500 limit typical)
• Business property ($2,500 limit typical)

Solution for High-Value Items: Purchase scheduled personal property endorsements or floaters for items that exceed standard limits.

⚖️ Coverage D: Loss of Use / Additional Living Expenses (ALE)

What It Covers: Additional costs if your home becomes uninhabitable due to a covered loss, including hotel bills, restaurant meals, storage, and temporary rentals.

How Much You Need: Typically 20-30% of your dwelling coverage. Coverage lasts until your home is repaired or rebuilt, or you reach the policy limit.

What’s Covered:

• Hotel or temporary rental costs
• Restaurant meals (the difference above your normal food budget)
• Laundry and dry cleaning costs
• Storage fees for furniture and belongings
• Pet boarding costs