Homeowners insurance policies often organize property coverage into labeled sections commonly referred to as Coverage A, B, C, and D. These labels help define what is protected and how coverage amounts are applied.
Coverage A refers to dwelling coverage. It protects the main structure of the home and attached components. This is typically the largest coverage limit in the policy.
Coverage B applies to other structures on the property, such as detached garages or sheds. Coverage limits are usually a percentage of Coverage A.
Coverage C covers personal property. This includes belongings inside the home and, in many cases, items temporarily away from the home. Coverage limits may be set as a percentage of Coverage A.
Coverage D refers to loss of use coverage. This helps pay for additional living expenses when the home cannot be occupied due to a covered loss.
Understanding these coverage sections helps homeowners interpret their policy, evaluate limits, and ensure that coverage aligns with the value of their home and belongings.
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