Regardless if you are a professional in the insurance world or not, the “language” used is not easy or always comprehendible. The following information is a guide to help individuals understand the difficult terminology.
This is taken directly from a CT homeowners policy (Travelers)
Coverage A – Dwelling
1. We cover:
a. The dwelling on the “residence premises” shown in the Declarations, including structures attached to the dwelling; and
b. Materials and supplies located on or next to the “residence premises” used to construct, alter or repair the dwelling or other structures on the “residence premises”
2. We do not cover land, including land on which the dwelling is located.
Coverage B – Other Structures
1. We cover other structures on the “residence premises” set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection.
2. We do not cover:
a. Land, including land on which the other structures are located;
b. Other structures rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage. How-ever, we do cover other structures rented to others as a private residence for which a limit of liability is shown in the Declarations for Structures Rented To Others;
c. Other structures from which any “business” is conducted; or
d. Other structure used to store “business” property. However, we do cover a structure that contains ”business” property solely owned by an “insured” or a tenant of the dwelling provided that “business” property does not include gaseous or liquid fuel, other than fuel in a permanently installed fuel tank of a vehicle or craft parked or stored in the structure.
Coverage C – Personal Property
1.Covered Property. We cover personal property owned or used by an “insured” while it is any where in the world. At your request, we will cover personal property owned by:
a. Others while the property is on the part of the “residence premises” occupied by an “in-sured”; or
b. A guest or a”residence employee” while the property is in any residence occupied by an “insured”.
To put it in English, Coverage A protects your home. The important thing to remember is that to replacement value of your home is much different then your resale value of your home. An easy way to estimate the coverage you need is to take the square footage of your home and multiply it by $175. Coverage B covers any structure not attached to your home. Coverage B is determined by multiplying Coverage A by 10%. Coverage C deals with personal property. This is all of the “stuff” inside your home.
Insurance policies can be very tough to read. If you wish to learn more, visit our website or call us at 800.660.2991.