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Dwelling includes the main structure of your home and other structures that are attached to it. Common examples of structures attached to a home are:
Dwelling coverage may also include things that are inside of your home:
Beyond your dwelling, there may be other buildings or structures within your property. Most common examples of these structures are:
These structures are covered within the verbiage of your insurance documents, which includes how the insurance company estimates claim payout in the event of a covered claim.
Personal liability coverage protects you, the homeowner, in the event of an accident inside or outside of your home. The coverage provides financial protection for:
According to the Insurance Information Institute, there were nearly 18,000 dog bite claims in 2019 and the average payout for a dog bite claim was $44,760. Dog bite claims remain as one of the top personal liability insurance claims year after year in the United States.
The financial protection afforded by your personal liability coverage also extends to injuries or damages caused by your pets including dog bites.
In-depth article: Personal Liability Coverage
Exactly like its name, personal property coverage provides financial protection for all of your personal belongings. Here is a list of the most common examples:
Simply known as "Med Pay," this coverage is designed specifically to cover the cost of medical expenses for any injuries your guests sustained while they are visiting your home.
Med pay offers some distinctive benefits that are different than other types of liability insurance:
Another essential coverage on your renters policy is called additional living expense, also commonly known as loss of use. Just as its name says, this coverage will take care of additional living expense in the event that your unit is not livable due to a covered peril such as fire.
Examples of covered expenses:
The amount of coverage is typically between 20% to 30% of your homeowners dwelling coverage, and most insurance companies do not have deductible for this coverage.
In-depth article: Additional Living Expense Coverage
Dwelling coverage is the main coverage that determines your homeowners insurance coverage limits. It is also the baseline that is used to determine coverage limits of other coverages such as personal property and loss of use.
Here is an example where the dwelling coverage is set at $500,000:
The main factor that determines your dwelling coverage is your home replacement cost.
Home replacement cost is the total estimated cost including labor and material to rebuild your home back to its original condition prior to a claim.
There are several main factors used to determine home replacement cost:
In-depth article: Home Replacement Cost
Home sales price is the market price of your property including both value of the land and value of any improvements on the land, such as your home, landscaping, or other features.
Home replacement cost on your insurance policy is the estimated cost including labor and material to rebuild your home back to its original condition prior to an insurance claim.
Every insurance company has its own guidelines for policies. We always recommend talking to your insurance agent to discuss your personal policies in detail. Working with an insurance agent is the best way to make sure you are properly covered.