Understanding the Protection That Covers Your Home
Coverage A (Dwelling) is the part of your homeowners insurance policy that protects the physical structure of your home.
Most homeowners know they have homeowners insurance, but many don't realize their policy is divided into several different coverages.
Coverage A—also called Dwelling Coverage—is the foundation of your homeowners policy because it helps pay to repair or rebuild the structure of your home after a covered loss.
What Does Coverage A Protect?
Coverage A helps pay to repair or rebuild the physical structure of your home after a covered loss.
In most cases, Coverage A protects the parts of your home that are permanently attached to the structure, including:
A simple rule of thumb: If it's permanently attached to your home, it's generally considered part of Coverage A.
What Doesn't Coverage A Cover?
Coverage A protects the structure of your home—but it doesn't protect everything on your property.
Some items are covered under different sections of your homeowners policy, including:
Rule of thumb: If it isn't attached to your home, it's probably covered somewhere other than Coverage A.
Common Misconception
Many homeowners believe their dwelling coverage should match what their home could sell for.
In reality, Coverage A is based on your home's reconstruction cost—the estimated cost to rebuild your home after a covered loss, not its market value.
That's why your dwelling coverage may be higher or lower than what your home would sell for on the real estate market.
Want to learn why? Read our article on Market Value vs. Reconstruction Cost.
Real-World Example
A windstorm damages your roof and causes water to enter your home.
The claim pays to repair:
Those repairs generally fall under Coverage A because they involve the structure of your home.
The Bottom Line
Coverage A is the foundation of your homeowners insurance policy because it protects the home itself.
Understanding what Coverage A does—and just as importantly, what it doesn't cover—can help you better understand your policy and make more informed insurance decisions.
If you ever have questions about your dwelling coverage or whether your home is insured for the right amount, I'd be happy to help explain your options.
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