Coverage A, Dwelling
This part of the policy pays for damages to the structure of your home, townhouse, or Condo ("real property")
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There are three types of covered causes of loss forms available. Form 1 provides protection for very basic causes of loss. Form 2 provides broad form -- a much better policy, and Form 3 provides special perils coverage. Personal liability protection is available by endorsement to the dwelling policy but is not always automatic.
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Coverage B, Other Structures
This part of the policy pays for damages to other structures on the premises
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Other structures/real property that are located on the same premises as the main building insured under a homeowner's insurance policy. Generally, these buildings are of lesser value. Common examples are detached garages, sheds, pool houses, etc.
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Coverage C, Personal Property
This part of the policy pays for damages to your personal property not otherwise limited or excluded.
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Property other than real property. Coverage of personal property and household goods against loss by insured causes in and out of residential premises. Certain types of property are completely excluded (ex: electronic devices made for vehicles). Computers, Tools, "Oriental Rugs", & Business Property may also be limited or excluded
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Special Property Limitations
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Other types of property have maximum limits that will be paid in the event of damage or theft: Jewelry/Watches, Furs, Silver/Gold/ Pewter wares & Bullion, Guns, Money, Securities, and Stamps being the most common with limits typically falling below $2,500.
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Scheduled Personal Property
The above coverage limitations can be eliminated by special coverage endorsements to the homeowner's policy.
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Homeowners policies do not cover stones falling out of jewelry settings, mysterious disappearance, cracked stones, or typically values in excess of $1,500 in the event of theft. Get these coverages and more, when you specifically list your jewelry, guns, cameras, computers, collectibles, fine arts, sports equipment, musical instruments and more. If you have this coverage already, don't forget to update these values every few years.
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Coverage D, Loss of Use
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Insurance which compensates you for your inability to live in your home which is destroyed or damaged by an insured cause of loss. Examples of reimbursable items: Cost to rent another home or unit while your home is being repaired, etc.
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Coverage E, Personal Liability
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Pays when you are legally liable for injury or death caused by your Negligence. Excludes negligence arising out of the use of a car, boat, or airplane but does include almost every personal activity except such as may arise from the operations of a business. Legal fees & court costs are also included.
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Coverage F, Medical Payments
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Protection to pay the cost of medical care to an injured person, resulting from activities arising from your residence, regardless of whether you are liable.
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Extended Replacement Cost
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Insurance company may pay up to 150% or more than the policy limits toward damages to the home caused by a covered cause of a loss. The percentage varies by insurer; coverage is NOT automatic.
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Ordinance or Law Coverage
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This endorsement amends the replacement cost provision in the policy to include the cost superior construction as required by law; coverage may not be automatic -- depends on the insurer. Ask for it.
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Replacement Cost for Your Personal Property
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This form of insurance provides coverage on the basis of full replacement cost without deduction for depreciation on any loss sustained. Certain types of property are not eligible for this endorsement: Rugs, antiques, art, etc.
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Standard Property Exclusions
Just a few to ponder; check your policy for the exact language.
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Earthquake, flood, water backup from sewers, neglect, intentional, governmental seizure, wear & tear, damage by animals, motorized vehicles (may include motorized lasers & "Barbie cars", bursting of frozen pipes, mechanical breakdown, pollutants, settling/shrinking
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Workers Compensation
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Is required for all California employers, including homeowners who e employ part-time or full time labor including home care attendants. Occasional employment is generally covered automatically under a California homeowner's policy -- domestic coming in ever other week is a good example; more full-time exposures (weekly domestic services) needs a separate full-time workers comp endorsement.
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Personal Injury
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Typically, Injury, other than bodily injury, resulting from false arrest, false detention, false imprisonment, malicious prosecution, wrongful eviction, wrongful entry, or the invasion of privacy of a premises. Language varies from insurer to insurer. Not all policies are the same; you must ask your agent about specific Personal Injury protection issues.
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Shared Ownership: Condos & Town Homes
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Review your CC&Rs (rule book for your association). Are you responsible for structural damage inside the unit from the fire wall, from the dry wall, or not at all? Tip: Often, Town Homes require the entire structure to be insured by YOU.
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Earthquake & Flood
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There are exclusions for certain types of damage in the homeowner's policy; earthquake & flood are excluded as are other types of damage such as wear & tear, seepage, mold, damage by animals, etc. Please refer to your policy for details.
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In-Home Businesses
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Homeowners policy excludes claims arising from business activities, for both Property and Liability protection. Detached garage, in which business is conducted, is subject to coverage being voided unless policy is amended.
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Rented Premises
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If any part of your home is rented to others, there may be coverage Limitations or complete Exclusions unless the policy is modified.
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Motorized and Recreational Vehicles
Motorized Scooters, Kid-Cars, Boats, Mopeds, Jet Skis, Go-Karts, etc.
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These low impact motorized vehicles & scooters, boats, planes, and Skis are excluded for liability insurance and, for the most part, Property protection unless the policy is modified. In some cases, like jet skis, boats & planes, separate policies are required.
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Vacancy Clause
If your Home is Vacant, your Insurance protection for your home may be suspended.
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Classically, damages from Vandalism and malicious mischief, and any ensuing loss caused by any intentional and wrongful act committed in the course of the vandalism or malicious mischief, is excluded if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. Most insurance companies in CA have 30-60 day clauses, and CA insurers tend to also exclude damage to glass while the building sits vacant. Check with your agent and your company's specific language a there have been many recent changes to vacancy protection.
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Who is Insured?
Trusts and LLCs need to be named.
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You, spouses, resident relatives; anyone else should be named to be safe although some policies have broadened definitions.
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Insured Locations:
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Generally, these include your residence, vacant land, & anywhere You are temporarily residing (hotel, etc).
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Standard Personal Liability Exclusions:
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Policy doesn't cover professional, business, workers comp, (except where coverage is specifically granted), airplane, watercraft, or rental exposures or claims. Properly endorsed, the homeowner's policy can be directed to cover some of these exposures.
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