What’s the difference between dwelling, personal property and liability coverage?

What is dwelling coverage?

Dwelling coverage is a key part of a typical home insurance policy that helps cover the cost of repairing or rebuilding your home after a damaging incident. In general, incidents protected by dwelling coverage include fire, smoke, vandalism, accidental water damage and falling objects like tree branches. Dwelling policy coverage typically only applies to damages to the structural elements of your home. These may include:

• Walls
• Roof
• Windows
• Plumbing and electrical systems
• Attached structures like decks and garages

Damages caused by floods or earthquakes are typically not protected under dwelling coverage. If you live in an area with a high risk of experiencing these natural disasters, it may be wise to get an additional insurance policy.

Dwelling property insurance plays an important role in homeowners policies because it helps protect you from major out-of-pocket expenses like construction fees. The cost of making repairs to your home after a damaging incident can range from hundreds to thousands of dollars. This part of your home insurance policy helps relieve the financial burden of pricey repairs.

What is personal property coverage?

Personal property coverage is also an important aspect of most home insurance plans that helps cover the cost of replacing your belongings if they’re damaged or stolen. Damaging events covered under personal property coverage may include fire, smoke, theft, vandalism and accidental water damage. A wide range of personal belongings are typically covered, including:

• Furniture
• Clothing
• Appliances like your fridge, dishwasher and washing machine
• Decor like rugs and artwork
• Valuables like jewelry, technology and sports equipment

Generally, personal belongings are also covered even if they’re damaged outside the home. If an item like your laptop is stolen from your hotel room, your personal property protection may help cover the cost of replacing it.

Coverage limits may apply for high-value items in some personal property insurance policies. The cost of replacing belongings like jewelry or electronics that exceed values of $2,000 or $3,000 may not be fully covered. If you have high-value items you’d like to insure, it may be beneficial to consider additional coverage.

What is liability coverage?

Liability coverage in a homeowners insurance policy helps protect you financially if you’re legally held responsible for injuries or damages to another’s property. More specifically, liability coverage helps with legal costs like lawyer fees or necessary repairs for damaged property.

An example of when your liability insurance may offer protection could be if someone sues you after falling and breaking a bone in your home. Another example may be if you accidentally break a neighbor’s window while playing outside. If you’re found legally responsible following events like these, there’s potential for hefty fees. Personal liability insurance helps ensure you’re not left on your own to manage expenses.

How much dwelling, personal property and liability coverage do I need?

When disaster strikes — like a fire or break-in — these areas of your home insurance policy are designed to help protect your financial well-being. That’s why it’s important to ensure you get the right amount of coverage for your unique needs.

To help determine the right amount of coverage, it’s important to evaluate the potential costs involved in repairing your home, replacing lost property or covering legal fees. Consider the cost of construction in your area, the value of your belongings and how much lawyers charge. Adding up these expenses may help you identify the coverage amount that’s best for you and your home.

Finding your policy

As you look for homeowners insurance, it could be helpful to compare quotes from different providers, explore policies with different deductibles and reach out to customer support if you have any questions. Learning more about your options can help you find the policy that best fits your needs and budget.

The TruStage™ Auto & Home Insurance Program makes it simple for individuals looking for homeowners insurance. You can begin your search today by getting a quote online in minutes.