Homeowners Insurance

• Package policy covering home, contents, property and liability
• Loss of Use provision included in most packages
• Replacement Value coverage may be available for newer homes

The Homeowners Insurance Policy is a package policy which combines coverage for real property (the home itself), the contents (personal property in the home), the property the home sits on and its contents as well as the liability exposures of the people living in the home.

There are two major sections in a Homeowners policy. Section I includes the insurance of property. This basically provides coverage for the home and its contents. Section II includes the liability insurance.

The most common type of Homeowners policy is the Homeowners 3 Special Form (HO-3). This has broad insurance coverage that meets the needs of most homeowners.

Section I: Property is broken down into coverages:

• Coverage A: Dwelling – the dwelling is the home itself.
• Coverage B: Other Structures – this could be a detached garage or shed
• Coverage C: Personal Property – contents of the homeowner
• Coverage D: Loss of Use – Provides money for the homeowner to temporarily move to another location if the dwelling is not fit to live in because of an insured loss.

Section II: Liability is broken down into two coverages:

• Coverage E: Personal Liability - coverage provided if a claim is made by the homeowner because of bodily injury or property damage caused by the homeowner.
• Coverage F: Medical Payments to Others - covers necessary medical expenses of others (not homeowner or occupants) as a result of injury on your premises or caused by the homeowner/occupants actions.