Homeowners insurance coverages A, B, C and D, explained

Coverage A: the house

Coverage A, often called dwelling coverage, pays to repair or rebuild the house itself and anything attached to it: the roof, walls, floors, built-in cabinets, an attached garage, the plumbing and wiring. Its limit should be what it would cost to rebuild the house today, which is not the same as what the house would sell for. Land is never part of it.

Coverage A is the anchor for the rest of the policy. Many insurers set B, C and D as a share of it, so when your dwelling limit goes up at renewal, the others often go up with it.

Coverage B: other structures

Coverage B pays for structures on your property that aren't attached to the house: a detached garage, a shed, a fence, a gazebo, a driveway. It is commonly set at 10% of Coverage A. A large detached workshop or barn may need more, which you can usually buy.

Coverage C: your belongings

Coverage C, personal property coverage, pays for the things you own: furniture, clothes, electronics, appliances that aren't built in, tools and so on. It usually covers them anywhere in the world, so a laptop stolen from a hotel counts, though some policies pay less for things kept away from home.

It is often set at 50% to 70% of Coverage A. Inside it, some kinds of property have their own lower sublimit, most often jewelry, cash, firearms and silverware. Whether it pays replacement cost or the depreciated value depends on your policy. To work out whether your limit is enough, see how much personal property coverage you need.

Coverage D: loss of use

Coverage D pays the extra cost of living somewhere else while a covered loss keeps you out of your home: a hotel or rental, meals above your usual grocery bill, extra mileage. It is often 20% to 30% of Coverage A, and some policies cap it by time instead. Our guide to loss of use coverage covers what counts and what receipts to keep.

Coverages E and F: liability and medical payments

Coverage E, personal liability, pays if you are found responsible for hurting someone or damaging their property, including legal costs. Coverage F, medical payments to others, pays small medical bills for a guest hurt at your home, whoever was at fault. Neither pays for your own injuries or your own things.

How the limits are usually set

Here is how the shares often work out on a house insured to rebuild for $300,000:

Your deductible is usually one amount for the claim, not one per coverage. Some policies have a separate wind, hail or hurricane deductible set as a percentage of Coverage A, which can be several thousand dollars. Check your policy for both.

Which coverage pays after a kitchen fire

One loss usually draws on several parts of the policy at once:

• The burned cabinets, walls and ceiling: Coverage A.
• The scorched fence next to the back door: Coverage B.
• The table, dishes, small appliances and the clothes that smell of smoke: Coverage C.
• The hotel and meals while the kitchen is rebuilt: Coverage D.

Each part has its own limit and its own paperwork. The house usually runs on a contractor's estimate, while Coverage C runs on your list of what was lost, which is where most of the work falls on you.

Where to find your own limits

Every figure above is on your declarations page, the one or two pages at the front of the policy your insurer sends at each renewal. You can usually download it from the insurer's app or website. When you read it, look for:

• The dollar limit next to each lettered coverage.
• Whether personal property is paid at replacement cost or actual cash value. It is often a separate line or an endorsement.
• Your deductible, and any separate wind, hail or hurricane deductible.
• Any endorsements that change the lettered coverages, such as water backup or scheduled jewelry.

If a figure looks wrong for your house or your belongings, call your agent before a loss, not after.

Renters and condo policies

A renters policy has no Coverage A or B, because the building is the landlord's. It is mostly Coverage C, plus D, E and F. A condo policy adds a small Coverage A for the inside of your unit, such as floors, fixtures and upgrades, while the association insures the building.

Where Indemnia helps

Coverage C only pays for what you can show you owned. Indemnia builds that list ahead of time from your photos and email receipts, with today's prices, so you know what your belongings are worth before you need to claim them.