Understanding Home Insurance Policy

Straightforward Answers to What Your Policy Really Protects

Most homeowners know they have insurance—but many aren't exactly sure what each part of the policy actually covers. This guide explains the six main sections of a homeowners insurance policy in plain English and links to more detailed explanations for each one.

What's Included in a Homeowners Insurance Policy?

A standard homeowners insurance policy is made up of six primary coverages. Each one protects something different—from your house itself to your belongings, liability protection, and even hotel expenses if your home becomes unlivable after a covered loss.

Understanding what each coverage does can help you make better decisions when reviewing your policy.

Understanding the Six Main Coverages

Many people assume homeowners insurance is simply insurance on the house.

In reality, your policy is made up of six separate coverages, each designed to protect something different:

• Coverage A – Dwelling: Protects the structure of your home.
• Coverage B – Other Structures: Protects detached garages, fences, sheds, and other permanent structures on your property.
• Coverage C – Personal Property: Protects your furniture, clothing, electronics, and other personal belongings.
• Coverage D – Loss of Use: Helps pay additional living expenses if a covered loss makes your home temporarily uninhabitable.
• Coverage E – Personal Liability: Helps protect you financially if you're legally responsible for causing bodily injury or property damage to someone else.
• Coverage F – Medical Payments: Helps pay for minor medical expenses if a guest is accidentally injured on your property.

Click a coverage below to learn what it protects, common misconceptions, and how it works when you need it most.