Homeowners insurance is a form of property insurance designed to protect an individual’s home against damages to the house itself, or to possessions in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
In the U.S. there are seven forms of homeowners insurance that have become standardized in the industry; they range in name from HO-1 through HO-8 and offer various levels of protection depending on the needs of the homeowner.
While coverage limits can vary, there are 6 core coverage components that make up a standard policy in the United States. See below:
|Coverage Component||Typical Limit of Coverage|
|Coverage A – Dwelling||Policyholder chooses|
|Coverage B – Other structures||10% of Dwelling coverage limit|
|Coverage C – Personal property||50% of Dwelling coverage limit|
|Coverage D – Loss of use||20% of Dwelling coverage limit|
|Coverage E – Personal liability||Policyholder chooses|
|Coverage F – Medical payments||Policyholder chooses|