Insurance Agent, Farmers Insurance, San Francisco Bay Area
When you establish a Home Insurance policy, some of the coverage is automatically included, and some of the coverage is optional. Let's take a look at the included coverage first.
Coverage A - Dwelling: This is the primary coverage for the policy and dictates the amount of some of the other included coverage limits. This is the amount that the insurance company will pay up to in the case of any claims. From a simple window breakage due to storm damage, or a total loss due to fire, the maximum the policy will pay during any one policy period (typically a year) would be the amount shown on this coverage
Coverage B - Other Structures: This coverage is for fences, detached garages, unattached decks or gazebos and etc. The limit on this coverage is typically a percentage of Coverage A, for example 10% of the amount of your dwelling limits. This coverage is in addition to Coverage A, meaning if a loss damaged more than just the dwelling, you can collect on both.
Coverage C - Personal Property: This is the limit the policy will pay to replace your belongings, furniture, clothing, and etc. Typically this is 50% of Coverage A, and again this is in addition to Coverage A.
Coverage D - Loss of Use: If there was a claim initiated on your property, and you had to find temporary residence while repairs were being made, or the home was simply no longer livable, this would be the coverage that would apply. Typically this is 30% of Coverage A and would be in addition as well.
On top of these coverage limits, you can have additional coverage through either automatically included or optional extensions of coverage. These can include, but are not limited to: Debris Removal; Cyber Theft Protection; Credit Card and Forgery; Trees, Shrubs and Plants; Fire Department Service Charge; Ordinance or Law; Glass Breakage; and additional riders to increase personal property coverage above limits. For example, the policy might restrict replacement of Money/Gold/Coins to only $200 per claim. Or Jewelry, Furs, Precious Stones to $1000 per item / $5000 per claim. These riders would increase coverage for those specific items you might have that are of greater value.
Finally, there is coverage for Personal Liability, which is included in most policies, but is not calculated as a percentage of Coverage A. Typically the limits provided for this coverage start at $100,000 and can be as high as $1,000,000 or more in some States. This coverage would apply if you were ever personally sued for any activity other than a vehicle accident, as your auto policy would cover that.
I know that's a lot to think about. I highly recommend you meet with a licensed insurance agent in your area to have them walk you through all of the options available and help select the right amount of insurance for your individual needs.
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Coverage A - Dwelling: This is the primary coverage for the policy and dictates the amount of some of the other included coverage limits. This is the amount that the insurance company will pay up to in the case of any claims. From a simple window breakage due to storm damage, or a total loss due to fire, the maximum the policy will pay during any one policy period (typically a year) would be the amount shown on this coverage
Coverage B - Other Structures: This coverage is for fences, detached garages, unattached decks or gazebos and etc. The limit on this coverage is typically a percentage of Coverage A, for example 10% of the amount of your dwelling limits. This coverage is in addition to Coverage A, meaning if a loss damaged more than just the dwelling, you can collect on both.
Coverage C - Personal Property: This is the limit the policy will pay to replace your belongings, furniture, clothing, and etc. Typically this is 50% of Coverage A, and again this is in addition to Coverage A.
Coverage D - Loss of Use: If there was a claim initiated on your property, and you had to find temporary residence while repairs were being made, or the home was simply no longer livable, this would be the coverage that would apply. Typically this is 30% of Coverage A and would be in addition as well.
On top of these coverage limits, you can have additional coverage through either automatically included or optional extensions of coverage. These can include, but are not limited to: Debris Removal; Cyber Theft Protection; Credit Card and Forgery; Trees, Shrubs and Plants; Fire Department Service Charge; Ordinance or Law; Glass Breakage; and additional riders to increase personal property coverage above limits. For example, the policy might restrict replacement of Money/Gold/Coins to only $200 per claim. Or Jewelry, Furs, Precious Stones to $1000 per item / $5000 per claim. These riders would increase coverage for those specific items you might have that are of greater value.
Finally, there is coverage for Personal Liability, which is included in most policies, but is not calculated as a percentage of Coverage A. Typically the limits provided for this coverage start at $100,000 and can be as high as $1,000,000 or more in some States. This coverage would apply if you were ever personally sued for any activity other than a vehicle accident, as your auto policy would cover that.
I know that's a lot to think about. I highly recommend you meet with a licensed insurance agent in your area to have them walk you through all of the options available and help select the right amount of insurance for your individual needs.