Two things that are an essential part of everyone’s Homeowner’s Policy are Coverages B and D.
While these two coverages are included in every good Homeowner’s Policy, not every insurance company looks at them the same way. Let’s take a closer look.
About Coverage B
Coverage B would cover Other Structures such as buildings, detached garages, barns, work sheds, and fencing. Coverage B / Other Structures Coverage typically comes standard at 10% of the Coverage A / Dwelling Coverage amount on your Homeowner’s Policy. So if you have $400,000 in Coverage A / Dwelling Coverage, you would then have $40,000 in Coverage B / Other Structures Coverage (i.e., 10% of $400K is $40K). You might not be able to decrease that percentage or amount, but in most cases you can increase it as needed. For instance, one of our carriers, Erie Insurance, automatically comes with Coverage B / Other Structures Coverage set at 20% in all their Homeowner’s Policies.
If you’re unsure how much Coverage B / Other Structures Coverage you need, think of it this way — Coverage B comes into play when insuring a multi-car detached garage, large barn, or pool. And it would be indispensable Coverage to have if a tornado ripped up an entire section of your fence, barn, or shed.
Please note — Any tools or additional items kept in a garage, barn, shed, or pool wouldn’t be covered through Coverage B / Other Structures. These items would be considered Personal Property and would be covered under Coverage C (discussed in last month’s e-news; click HERE to read).
About Coverage D
Coverage D is also known as Loss of Use, since its purpose is to help cover expenses should you lose the use of your home. This Coverage is growing in importance these days as timelines for rebuilding continue to expand. Some policies give Actual Loss; some provide 12 months; others give 24 months.
Coverage D also reimburses you for Additional Living Expenses — it ensures you have a place to stay that fits your entire family. If you experience a minor, covered loss and need to move out of your home temporarily, Coverage D is a good friend. But if you experience a major, covered loss and need a long-term solution, Coverage D is your best friend!
Coverage D / Loss of Use also works by reimbursing you for unexpected expenses. It could help provide hotel rooms while looking for a temporary home or apartment, purchase groceries or restaurant meals, cover reasonable gas charges, or even pay for storage fees.
Make sure to review Coverages B and D in your Homeowner’s Policy and call us if you have questions or would like to increase either of these amounts.