Parts of homeowners insurance coverages

​Homeowners policies combine several types of coverage into one policy. Most homeowners policies in Texas include these six coverages:

1. Dwelling coverage- Coverage for the house itself
2. Personal property coverage-Coverage for your personal items, such as furniture, clothes, etc
3. Other structures coverage- Coverage for structures on your property that aren’t attached to your house, such as detached garages, storage sheds, etc.
4. Loss of use coverage- coverage for additional living expenses if you have to live outside of your home during a covered claim repair. Additional living expenses can include rent, food, and other costs you could incur while living outside your home.
5. Personal liability coverage- coverage for medical bills, lost wages, and other costs for people that you’re legally responsible for injuring. It can also provide coverage if you’re responsible for damaging someone else’s property or pay court costs associated with these losses.
6. Medical payments coverage- coverage for medical bills of people hurt on your property. It can also provide coverage for some injuries that happen away from your home.

 
There are 2 types of coverages for your dwelling itself, and personal property. They are replacement cost vs actual cash value.
Replacement cost vs. actual cash value coverage
The broadest coverage option is replacement cost coverage.

• Replacement cost coverage-provides coverage to repair or replace your dwelling or personal property at the current market costs. For example, say you have a TV you bought in 2005 and the actual value is $100, and the current price for the same size TV is $500, your coverage would pay for a brand new TV at todays price, once the deductible is factored in.
• Actual cash value coverage-provides replacement cost minus depreciation. Depreciation is a decrease in value due to wear and age. In the same example of the TV from 2005, the actual cash value might be $100, that would be all the coverage that is provided with this type of coverage.
• Your deductible is also a factor when filing a claim-we will cover that in a later blog post.