Homeowners Insurance Coverage A Through F, Explained With a Sample Policy
A homeowners policy is really six coverages under one premium. Here is what each lettered coverage does, how the limits are usually set, and the gaps to check on your own declarations page.
Most homeowners policies in the U.S. divide protection into lettered sections, commonly Coverage A through F. Each has its own limit and its own rules. Several of the limits are often set automatically as a percentage of the dwelling limit, which means many owners have never actually chosen them.
The short version
- A, Dwelling: the house and attached structures.
- B, Other structures: detached garage, fence, shed.
- C, Personal property: your belongings.
- D, Loss of use: extra living costs if you can't live at home after a covered loss.
- E, Personal liability: claims that you injured someone or damaged their property.
- F, Medical payments to others: small medical bills for guests, regardless of fault.
- On many policy forms, B, C, and D default to a percentage of A. Check whether those defaults fit your home.
A sample policy
A hypothetical policy with a $400,000 dwelling limit, using percentages that are common defaults on many forms:
| Coverage | How the limit is often set | Sample limit |
|---|---|---|
| A, Dwelling | Chosen to match rebuilding cost | $400,000 |
| B, Other structures | Often 10% of A | $40,000 |
| C, Personal property | Often 50% to 70% of A | $200,000 |
| D, Loss of use | Often 20% to 30% of A, or a time limit | $120,000 |
| E, Personal liability | Chosen, often $100,000 to $500,000 | $300,000 |
| F, Medical payments | Chosen, usually small | $5,000 |
Show the numbers behind this chart
| Limit | |
|---|---|
| A: Dwelling | $400,000 |
| E: Personal liability | $300,000 |
| C: Personal property | $200,000 |
| D: Loss of use | $120,000 |
| B: Other structures | $40,000 |
| F: Medical payments | $5,000 |
Coverage A: Dwelling
Pays to repair or rebuild the house. The most important number here is whether the limit matches current rebuilding cost, not market value or purchase price. Underinsuring can reduce payouts even on partial losses through the coinsurance or insurance-to-value provisions; see replacement cost vs. actual cash value.
Also check for extended replacement cost, ordinance or law coverage, and special deductibles; see ordinance or law coverage and wind and hurricane deductibles.
Coverage B: Other structures
Covers structures not attached to the house. If you have a large detached garage, workshop, or guest house, 10% of A may not be enough.
Coverage C: Personal property
Covers belongings, often on a named-perils basis and often at actual cash value unless you add replacement cost; see named vs. open perils. Special limits apply to jewelry, cash, firearms, collectibles, and other categories; see scheduled personal property. A home inventory shows whether the limit is adequate.
Coverage D: Loss of use
Pays additional living expenses, and lost rental income on any rented portion, if a covered loss makes the home unlivable. See loss of use coverage.
Coverage E: Personal liability
Pays damages and legal defense if you're found responsible for injuring someone or damaging their property, at home or elsewhere, subject to exclusions. Business activities, intentional acts, and certain vehicles are commonly excluded. See liability limits and umbrella insurance.
Coverage F: Medical payments to others
Pays modest medical bills for guests injured on your property, regardless of fault. It's meant to resolve minor injuries quickly. It doesn't cover you or members of your household.
What none of these cover by default
- Flood; see flood insurance.
- Earthquake; see earthquake insurance.
- Sewer backup without an endorsement; see sewer backup coverage.
- Wear, tear, and maintenance.
- Most business activities.
The takeaway
A homeowners policy bundles six coverages, and several limits are set automatically from the dwelling limit. Check that A matches rebuilding cost, that B and C fit what you actually own, that D would last through a long rebuild, and that E reflects what you could lose in a lawsuit.
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