If your home sustains damage or is destroyed by a covered loss, the dwelling coverage will pay the cost to repair or replace your home, up to the limits of the policy. Attached structures, such as garages, pools and patio covers, are typically included in the dwelling coverage limit.
The other structures coverage of your policy provides coverage to permanent structures not attached to your home. Other structures include detached garages, fences & sheds. The policy limit for other structures is typically set at 10 percent of the dwelling coverage limit.
Personal property coverage pays for the damage, destruction or theft of your personal belongings, up to the limits of the policy. The limits for personal property coverage are typically set at 50 percent of the dwelling limit, but you can request to set the limit at a higher amount. Valuables such as jewelry and artwork require a separate policy or endorsement to the policy to be covered.
Loss of Use
During the restoration of your home, loss of use coverage provides money for you to pay for a hotel or a rental home. You can either make a claim for additional living expenses (ALE) or fair rental value. If you make a claim for ALE, you need to document the costs you incurred to maintain your normal standard of living and submit it to the insurance company for reimbursement. With fair rental value, the insurance company will estimate the rental value of a similar home and pay you accordingly.
If an injury is sustained by someone due to your negligence, the liability coverage will compensate that person for his medical bills and pain and suffering. The injury needs to occur on your property, but it cannot be the result of an intentional act. If a lawsuit is filed against you because of a covered loss, payment of defense costs is typically provided by the liability coverage. Coverage amount is up to the policy limit.
Medical payment coverage pays for the medical bills of someone who sustains an injury on your property, regardless of your negligence, up to the policy limit.
Exclusions and Limits
Most homeowner’s policies contain numerous exclusions. For instance, homeowner’s policies in Florida do not include coverage for Flooding. You have to purchase a separate flood policy. Read your homeowners policy in it entirety and familiarize yourself with all of the exclusions and limits.