Question

The Section I property coverage provide different types of coverages to an insured. For each of the following coverages, briefly describe the type of coverage provided and give an example of a loss that would be covered.

a. Coverage A: Dwelling

b. Coverage: Other Structures

c. Coverage C: Personal Property

d. Coverage D: Loss of Use

e. Additional coverages

Answer 1

a.Dwelling coverage

Dwelling coverage also called coverage A. It is the portion of the homeowners policy that covers the costs to repair or rebuild a home after it's damaged by a covered peril, such as fire, vandalism, burst pipe, wind damage etc. It includes all of the home’s structures such as its garage or porch. But it doesn’t cover damages caused by earthquake, flooding, sinkholes and sewage backups.

b.Other structures coverage

Other structures coverage is also called coverage B. Other structures coverage helps to pay for repairs and for replacing structures other than the home such as fences, mailboxes, sheds and attached garage if they are damaged by coverage risk. It covers the losses caused by the same perils in the dwelling coverage like fire, vandalism etc.

c.Personal Property Coverage

Personal property coverage is called coverage C. This coverage insures all of the homeowners personal belongings like furniture and appliances. This coverage is helpful when the interior of the house is sustains damage like fire. Some policies provides coverage for valuable items such as jewelry, paintings, guns etc.

d.Loss of use coverage

Loss of use coverage is also called coverage D. This coverage applies in the instance that a home is damaged to the extent that the homeowner can no longer live in it. An example would be if a pipe bursts and floods the house that causes the homeowner to live in a hotel. This coverage reimburses for expenses such as food, housing etc.

e.Additional Coverage

Additional Coverage is coverage that provides funds for expenses above what the policyholder was paying before a claim was made. For example, in case of a home destroyed by fire, additional coverage covers expenses related to food and transportation.