Home insurance offers vital protection for what is often your most valuable asset. Whether you’re an experienced homeowner or looking to become a first-time home buyer, you know that home insurance is important to your financial security. But many don’t know the details of what home insurance covers – and what it doesn’t.
An HO3 policy is the most common type of home insurance. It covers your home, what’s inside it, and your financial well-being, with protection from risks like fire, wind, theft, and liability. Home insurance coverage is broken down into six components, Coverages A through F.
At Orion180, we create a clear, transparent, and personal insurance experience. Understanding your home insurance policy lets you make confident decisions about your policy, and work with your agent to make sure you have the protection you need. Read on to learn more about HO3 Coverages and more, and work with your agent to get a policy that meets your needs.
Home Insurance Coverage A
Coverage A is also known as dwelling coverage. It protects the structure of your home, covering the cost of rebuilding or repairing after a covered peril. Coverage A also extends to structures attached to your home like a garage or a deck. Learn more.
Home Insurance Coverage B
Your property might have more than just a home built on it. This is where Coverage B, or other structures coverage, comes in. This will help you repair or rebuild things like sheds, fences, gazebos, and detached garages after a damage from a covered peril. Learn more.
Home Insurance Coverage C
Coverage C, or personal property coverage, protects the belongings within your home. Everything from furniture and electronics to jewelry and clothing falls under Coverage C, and keeping a home inventory is a great way to know how much coverage you need and simplify claims. Learn more.
Home Insurance Coverage D
Your home insurance offers you protection from major damage to your home, and the extends to helping you if your home is temporarily uninhabitable. Coverage D is also known as loss of use coverage or additional living expenses coverage, and it helps you pay for things like rent, meals, storage fees, and transportation if you can’t stay in your home due to a covered peril. Learn more.
Home Insurance Coverage E
Coverage E protects your financial wellbeing as a homeowner. Also called personal liability coverage, it offers protection for scenarios like someone being injured on your property or property damage. This coverage can also help you pay for legal expenses. Learn more.
Home Insurance Coverage F
Finally, Coverage F – also called medical payments to others coverage – helps you pay for medical expenses for someone who is injured on your property. It can protect you regardless of if you are found to be at fault, and therefore can discourage lawsuits. Learn more.
Understanding Covered Perils
When speaking about Home Insurance, “perils” are the causes of loss or damage to your property. Your home is protected from a wide range of perils with an HO3 policy, from lightning, fire, and hail, to vandalism and theft. However, it is important to understand what is not covered. Home insurance typically does not cover:
- Earthquake
- Wear and tear
- Maintenance issues or neglect
- Flood
Flood Insurance
Because flood damage is not typically covered in a home insurance policy, it is important to explore a separate flood insurance policy. Flood damage can be extremely expensive to repair; just 1 inch of standing water can lead to $25,000 in damage. Flooding doesn’t always look like a disaster movie. It often looks like a normal storm that overwhelmed the wrong street, drain, or yard. Make sure your home is protected from worst-case scenarios.
