The six standard coverages on a typical homeowners (HO-3) policy — what each one protects and how limits usually work.
Coverage A should reflect replacement cost based on current quality and value to replace your home — what it costs to rebuild today using the same materials, finishes, and features, not market value or purchase price.
Other structures, personal property, and loss of use are usually set as percentages of your dwelling limit. Flood and earthquake require separate policies.
Pays to repair or rebuild the physical structure of your home — walls, roof*, floors, built-in appliances — after covered perils like fire, wind, hail, or theft-related damage.
Replacement cost based on current quality and value to replace your home.
* Roof replacement will typically reduce your insurance rates significantly — roughly 10–20%.
Underinsuring the dwelling is one of the most common gaps after a major loss.
Covers detached structures on your property — garages, fences, sheds, gazebos, and driveways — when damaged by a covered peril. Limit is usually 10% of Coverage A unless you increase it.
Protects furniture, clothing, electronics, and other belongings — at home or away (often with sub-limits for jewelry, bikes, or business property). Replacement cost upgrades are usually available.
Pays additional living expenses — hotel, meals, storage, laundry — if a covered loss makes your home uninhabitable during repairs. Critical after fires or major storm damage.
Defends you and pays settlements if someone is injured on your property or you accidentally cause property damage or injury to others.
Higher limits help protect income, savings, and future earnings after a serious claim.
Pays reasonable medical bills for guests injured on your property — regardless of fault. Typical limits run $1,000–$5,000 per person. Not a substitute for health insurance or liability coverage.
Deductibles, wind/hail percentages, water backup, and ordinance-or-law coverage vary by carrier and state. A licensed FCIB agent can align your dwelling limit, endorsements, and deductibles with your home and mortgage requirements.
