Understanding Your Homeowners Policy: Coverages A, B, C & D

Your Policy Has Four Main Coverages

Most homeowners have never read their insurance policy in detail — and that's understandable. But knowing the basics of what your policy covers can make a huge difference when you're filing a claim. Here's a straightforward breakdown of the four main coverage categories.

Coverage A — Dwelling

This covers the physical structure of your home: the walls, roof, floors, built-in appliances, plumbing, electrical, HVAC, and anything permanently attached to the house. If a fire damages your kitchen, Coverage A pays to repair or rebuild the structure itself.

This is typically the largest coverage amount on your policy and is based on the estimated cost to rebuild your home — not its market value.

Coverage B — Other Structures

This covers structures on your property that are not attached to the main dwelling: detached garages, sheds, fences, gazebos, pool equipment enclosures, and similar. Coverage B is usually set at 10% of your Coverage A limit, though this varies by policy.

Homeowners often forget about this coverage when filing a claim. If a storm damages your fence or a detached patio cover, that's Coverage B.

Coverage C — Personal Property (Contents)

This covers your belongings — furniture, clothing, electronics, appliances, kitchenware, tools, decorations, and everything else inside your home that isn't part of the structure itself.

Contents claims are one of the areas where homeowners leave the most money on the table. Carriers frequently undervalue or undercount personal property losses. A thorough room-by-room inventory is critical.

Important: Check whether your policy provides Replacement Cost Value (RCV) or Actual Cash Value (ACV) for contents. RCV pays to replace items at today's prices. ACV depreciates items based on age and condition — which can significantly reduce your payout.

Coverage D — Additional Living Expenses (ALE)

If your home is uninhabitable due to a covered loss, Coverage D pays for the additional costs you incur while living elsewhere. This includes temporary housing, meals above your normal spending, storage, laundry, and increased transportation costs.

The key word is "additional" — the policy covers the difference between your normal living expenses and what you're spending because of the loss. For example, if you normally spend $400/month on groceries but restaurant meals while displaced cost $900/month, the additional $500 is covered.

How All Four Apply to a Single Loss

Here's an example to show how all four coverages can apply to one event:

Scenario: A kitchen fire causes structural damage, destroys appliances and personal items, damages a detached patio cover from radiant heat, and makes the home temporarily uninhabitable.

• •Coverage A (Dwelling): Repairs to kitchen walls, cabinets, countertops, flooring, ceiling, electrical, plumbing, and smoke damage throughout the home
• •Coverage B (Other Structures): Repair or replacement of the damaged detached patio cover
• •Coverage C (Contents): Replacement of destroyed small appliances, kitchenware, food, cleaning supplies, and any personal property damaged by smoke throughout the home
• •Coverage D (ALE): Hotel costs, restaurant meals (above normal), storage for undamaged belongings, and increased commute expenses while the home is being repaired

Many homeowners only think about the structural damage and miss three entire categories of coverage they're entitled to.

Know Your Limits and Deductibles

Every policy has coverage limits (the maximum the carrier will pay) and deductibles (what you pay out of pocket before insurance kicks in). Review your declarations page — the summary at the front of your policy — to understand your specific numbers.

How ADVOIQ Can Help

We review your policy as part of our process to make sure you're claiming everything you're entitled to — across all four coverages. Many homeowners file claims that only address Coverage A and miss significant recoverable amounts under B, C, and D.

Our free consultation includes a policy review so you understand your coverages before any decisions are made.