Homeowners Insurance or Home Insurance provides financial protection for your family and your home. Home Insurance consists of two main sections Part I and Part II. Part I of your policy will describe coverages which pay you the policy holder in the event of a covered loss. Part II of your policy will describes the liability protection offered, this pays the other party involved in the loss.
Part I
Part I contains Coverages A-D. You can think of Coverage A as the structure of the home itself, for example the walls and roof. Coverage B protects non-removable, tangible property that isn’t attached to your home. Fences, sheds and detached garages are coved by Coverage B. Your policy’s Coverage C is where you find coverage limits for personal property, basically it is the contents of your home and any items you own that you would take with you when you leave. An often overlook element of this coverage is that it extends coverage everywhere you may go. Coverage D reimburses your temporary living expenses or rental reimbursement, when you experience a covered loss. For this reason it’s call “loss of use”.
Part II
The Part II part of your policy provides liability protection and contains Coverage E and F. The Coverage E amount pertains to bodily injury or property damage liability. This includes events which occur on or off your property. For example, if you have an adolescent child whose bike scratches a neighbor’s car or your dog bites someone. Coverage F is there to pay for medical expenses for someone who becomes injured while on your property regardless of who is at fault, for example someone is helping you with dinner and cuts their finger. We generally refer to this as “Med Pay”.
Your policy can be enhanced with add-ins which are not included in the standard form policy. You should check with your experienced independent insurance agent here at Legacy Insurance to review your current policy or to save money on a new policy. The Texas Department of Insurance has a home insurance guide with additional information.