Currently shopping for home insurance, but feeling confused about all the different aspects that make up a policy? It will help to know the following information to help break down what is likely the biggest part of the policy, which is coverage A.
Coverage A Is For Your Home's Structure
Be aware that coverage A is the amount of protection that you have for your home's structure. It doesn't cover the land that the home sits on or any detached structure like a garage. It only covers the home itself and all the materials used to build it.
The replacement cost of the home is the amount of money needed to actually build it again in the state it was in before damage occurred. This is not the sales price of the home or the appraised value, but the cost of construction materials and labor to restore the home back to normal in a worst case scenario.
Coverage A Includes Items Connected To The Home
You may not be aware that coverage A will also cover anything that is connected to the home. If you have an attached garage, it is going to be covered, as well as any attached deck that is bolted to the home. It can even cover a patio if it touches the home. If there is a strip of land that separates a patio and the home, then that patio will not be covered under coverage A.
Coverage A Includes Demolition
Your coverage A policy limits are also designed to cover the demolition costs associated with your home if it is necessary. This is typically used in a total loss scenario where the home needs to be torn down and rebuilt from scratch, but it can also include the costs associated with tearing out a kitchen that was damaged by a house fire.
Coverage A Includes Things You Do Not Remove From The Home
When it comes to the replacement cost of a home, know that it also is going to include all of the things within the home that you would never remove from it if you were to sell it. This includes the HVAC system, major appliances for your kitchen, fixtures, bath tubs, and things of that nature.
If you do have to use your insurance to replace parts of the home that were damaged, it is designed to replace it with a similar item to what was damaged. This means that if you have a fancy whirlpool bathtub, you can replace the damaged tub with a similar model.
Reach out to your insurance provider for more information about coverage A and your homeowners insurance policy.Share