Homeowners Coverage 101


Home Insurance Coverage 101

If you are not familiar with "insurance lingo", sometimes talking to an insurance agent or reviewing your homeowner's policy can be confusing. 

A standard homeowners policy is broken up into two parts, Property Coverage and Liability Coverage:

1) Property Coverage:

  • Coverage A - Dwelling Coverage: This provides protection to your home and structures attached to your home, like an attached garage.
  • Coverage B - Other Structures: This helps protect structures other than your home that are on your property such as a shed or unattached garage.
  • Coverage C - Personal Property: This covers items that are inside your home such as furniture, appliances, clothing, and toys.
  • Coverage D - Loss of Use: If your home has damage due to a tornado and you have to stay in a hotel until the home is restored, this coverage would pay for those expenses incurred.  One thing to keep in mind is not all causes of loss are covered under a standard homeowners policy, such as sewer back up or earthquake, however, those can be added to your policy for an additional cost.

2)  Liability Coverage:

  • Personal Liability:  This type of coverage comes into play when you are legally liable for bodily injury or property damage at your home.  For example, if someone is hurt at a family cookout and they sue you, your liability coverage would come into play to help pay for the injuries.  
  • Medical Payments: This coverage helps with medical bills incurred by people on your property.  This would help pay for those medical bills of the person who fell at your family cookout.

TROXELL agent Jake Rourke, had a few helpful tips on what to look for when you are reviewing your homeowner's policy:

1)  Deductible: Not all insurance companies offer a flat deductible.  Some companies use a percentage to determine your deductible which means your deductible could be a lot higher than your realize.

  • For example, if your Coverage A is for $325,000 and you have a 1% deductible, your deductible is $3,250 vs. a flat rate deductible of $1,000.

2)  Replacement Cost vs. Actual Cash Value (ACV): Check to make sure your Coverage C (personal property) if based off of your replacement cost and not actual cash value.  

  • For example, if you buy a TV for $1,000 and it gets damaged in a Tornado, you want to make sure you are covered for what you bought it for (replacement cost) vs. the depreciated value (actual cash value).  

3)  Check your policy or ask your agent to make sure your roof is covered as a replacement cost vs. actual cash value.  

It is important to remember that every home is different and so is every homeowner's insurance policy. 

To learn what unique coverage you may need, contact Jake Rourke at 217-528-7533 or jrourke@troxellins.com to review your current policy (whether it is with TROXELL or another insurance company/agency). We will take the time to explain to you what is covered vs. what may not be covered.

This article was written by:

Alysse Hewell


Jake Rourke 

Jake Rourke Troxell insurance
Jake is a Commercial and Personal lines agent at TROXELL who brings value and expertise to each client he works with.  Jake is a proud graduate of Illinois State University and enjoys being involved in the Chatham and Springfield community.  Contact Jake today at 217-321-3147 or jrourke@troxellins.com   



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