Types of Coverage in a Homeowner's Insurance Policy | Department of Insurance, SC (2024)

FAQs

Types of Coverage in a Homeowner's Insurance Policy | Department of Insurance, SC? ›

Coverage A — Dwelling. Coverage B — Other Structures. Coverage C — Personal Property. Coverage D — Loss of Use.

Coverage A — Dwelling. Coverage B — Other Structures. Coverage C — Personal Property. Coverage D — Loss of Use.

There are many types of health coverage such as PPOs, EPOs and HMOs.

Home insurance usually covers the structure of your home and your personal belongings, typically covering the cost to repair or rebuild your home after a covered event, such as fire, hurricane, vandalism, or theft. Many policies will also cover detached structures, such as a garage, shed, fence, or gazebo.

There are two basic forms of an insuring agreement: Named–perils coverage, under which only those perils specifically listed in the policy are covered. If the peril is not listed, it is not covered. All–risk coverage, under which all losses are covered except those losses specifically excluded.

Key Takeaways

The three types of property insurance coverage are replacement cost, actual cash value, and extended replacement costs.

Coverage for your personal belongings such as furniture, clothing, jewelry, electronics, and entertainment equipment.

The most common types of insurance coverage include auto insurance, life insurance and homeowners insurance. Insurance coverage helps consumers recover financially from unexpected events, such as car accidents or the loss of an income-producing adult supporting a family.

Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have.

Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.

What is the most complete homeowners insurance policy coverage called? ›

Called a comprehensive policy, an HO-5 policy offers the highest level of insurance coverage for houses and belongings. It covers your house and belongings under all circ*mstances except those listed as exclusions in the policy. The exclusions for HO-5 policies are the same as those under an HO-3.

The most common type of homeowners insurance is the HO-3 policy. HO-3 policies offer more expansive coverage than HO-2s, meaning that your home's structure is safeguarded against all perils except for those specifically excluded (for example, earthquakes and floods) in your policy.

Dwelling coverage, also known as home structure coverage, helps protect the physical structure of your home, like the walls and roof.

The most common type of homeowners insurance is the HO-3 policy, which covers your home, your personal property, liability, additional living expenses and medical payments.

Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. Many policies contain a sixth part: endorsem*nts. Use these sections as guideposts in reviewing the policies. Examine each part to identify its key provisions and requirements.

First and foremost, you want a comprehensive perils policy for your homeowners insurance. A named-perils policy provides coverage ONLY for the select types of damage named in the specific policy. While it does cover the most common issues such as fire and theft, ANYTHING that isn't explicitly named is omitted.