Homeowners insurance policies have really come a long way in the recent years. To recap, the main coverage on your homeowners policy is:

Coverage A (Dwelling): In this portion of your homeowners policy, coverages are provided for the repair or reconstruction of your home should a claim occur.

Coverage B (Other Structures): In this portion of your homeowners policy, coverages are provided for structures such as detached garages, guest houses, sheds, pavilions, outdoor kitchens, etc. Typically your policy has a predetermined amount of coverage here, but many companies are now allowing this portion of the policy to be lowered or eliminated altogether because some people just don’t have anything else on their property except the main home.

Coverage C (Contents): In this portion of your homeowners policy, coverage is provided for your contents, or belongings. If your home is a total loss, it is highly likely that your belongings are too. Typically you are given 50% of your homes replacement cost in coverage for your belongings. You can purchase additional coverage if needed, and you can also purchase the right to buy brand new belongings instead of receiving a depreciated amount.

Coverage D (Personal Liability): In this portion of your homeowners policy coverage is provided should the insured or a member of his/her immediate family be sued or be responsible for damage to someone else’s property or person. Typically, you can purchase $100,000, $300,000, or $500,000 - but some companies are now allowing you to purchase as much as $1 million dollars.

Coverage E (Medical Payments): In this portion of your homeowners policy, coverage is provided for injuries that non-residents of the home sustain while on your property. Typically the limits only go as high at $5,000 or $10,000 - so if someone sustains a very costly injury on your property they may attempt to collect settlement from your higher personal liability limit.