Homeowners · Coverages A through F
House insurance, meaning the six parts of a homeowners policy
“House insurance” and “homeowners insurance” are the same product family. On a typical HO-3 the declarations page splits it into lettered coverages. A through D are property. E and F are liability. Flood is not one of the letters. Neither is a maintenance plan.
Hubs: Texas homeowners and Texas homeowners products. A condo is an HO-6. A renter is an HO-4. A landlord house is often a dwelling-fire form. Those are related, not the same six limits.
A through D: the property
| Section | What the limit is actually for |
|---|---|
| A — Dwelling | The house and attached structures. This is a rebuild limit, not the sale price and not the land. Replacement cost pays to repair with like materials if you meet the form’s insurance-to-value condition. Actual cash value subtracts depreciation. Replacement cost vs actual cash value. |
| B — Other structures | A detached garage, fence, or shed. Often set automatically at 10 percent of Coverage A. A $400,000 dwelling then has about $40,000 for all detached structures combined. A shop that costs more than that needs the limit raised. A structure you rent out or use for business is often excluded from B. |
| C — Personal property | Your belongings. Often 50 to 70 percent of A on a homeowners form, and it is a separate choice on a renters policy. Special limits cap cash, jewelry, and some electronics at a few hundred or a few thousand dollars unless you schedule them. Off the premises, many forms drop to about 10 percent of C. A home inventory is how you prove what C is supposed to pay. |
| D — Loss of use | Additional living expense if a covered loss makes the house unlivable. Often about 20 percent of A. It pays extra costs, a hotel above your normal housing cost, not your mortgage and not an open-ended stay. It ends when the house is livable or the limit or time cap is used up. |
E and F: when a person is hurt
Coverage E, personal liability, pays if you are legally responsible for someone else’s injury or property damage, up to the limit, and it usually includes a defense. A common starting limit is $100,000 or $300,000. That is a cap, not a suggestion that injuries stay that small. It does not pay to fix your own house.
Coverage F, medical payments, is the one people skip because the alphabet lesson stops at E. It is a small no-fault limit, often $1,000 to $5,000, for a guest’s medical bills on your property. It does not require you to be negligent. It is not health insurance, and it is not a substitute for E when the injury is serious.
What the letters do not include
- Flood. Rising water from outside is a separate policy.
- Earth movement, wear, and a slow leak. Sudden discharge from a plumbing system can be covered. Seepage over months usually is not.
- The wind or hail deductible, which in Texas is often a percent of Coverage A and comes off before A pays.
How a claim uses these sections: filing a homeowners claim. A plain outside overview of a standard form: Insurance Information Institute, standard homeowners coverage.
