The homeowner insurance policy is divided into sections. Each section has benefits and features. The home policy is divided into two main parts. When you see the declarations page on a home policy then you will see its structure very clearly.
Section I – provides property coverage for the dwelling, other structures, personal property and additional living expense.
A.The Dwelling – provides coverage to the dwelling and the structures attached to the dwelling.
B.Other Structures – Provides coverage for other structures other than the dwelling that set a part from the dwelling.
C.Personal Property – provides personal property coverage for the insured anywhere in the world.
D.Additional Living Expense – provides additional living expenses to the insured if their dwelling becomes uninhabitable.
Section II – provides liability insurance and medical payments to third parties.
A.Personal Liability- provides coverage in the event a claim or law suit is brought against the insured for damages because of bodily injury or property damage.
B.Medical Payments – provides medical payments to others in the event the individual is injured and requires medical treatment.
There are many more additional benefits and endorsements to these two sections. The home policy will list the perils that are covered under the policy. The homeowner policy has a wide range of protection. Homeowner insurance policies are sold on either a replacement cost or actual cash value basis. The replacement cost homeowner policy is more appropriate for newer homes built within the last 40 years. The actual cash value policy is better for older homes that have depreciated in market value.
There are discounts available for things like smoke detectors, dead bolt locks, and fire extinguishers. Burglar alarms and fire alarms that transmit to the police station and fire departments will qualify for even larger discounts. There are retirement discounts for the senior citizen as well as multi-policy discounts when you purchase auto and home insurance from the same company.