The parts of a homeowners policy: dwelling, other structures, personal property, loss of use and more
A standard homeowners policy has six parts, labeled Coverage A through F: dwelling, other structures, personal property, loss of use, personal liability and medical payments to others. The first four protect your property and are usually set as percentages of your dwelling limit; the last two protect you when someone else is hurt.
Published by Marcus L. Barber, former licensed Maryland property and casualty producer (2010–2012)Reviewed by Marcus L. Barber on Updated This guide is general education, not advice for your situation. We're an independent publisher, not an insurer or agent, and we may earn a commission from partner links. How we make money.
Key points
- Other structures (B) is typically 10% of your dwelling limit; personal property (C) is usually 50% to 70%.
- Loss of use (D) pays extra living costs above your normal spending while you can't live at home, often capped around 20% of the dwelling limit.
- Most policies include at least $100,000 of liability; the Insurance Information Institute recommends $300,000 to $500,000.
- Cash, jewelry, firearms and other valuables have low special limits. Schedule expensive items separately.
The six coverages at a glance
| Coverage | What it pays for | Typical limit |
|---|---|---|
| A. Dwelling | Your house and attached structures | Cost to rebuild your home |
| B. Other structures | Detached garage, shed, fence | About 10% of A |
| C. Personal property | Your belongings, at home and away | 50% to 70% of A |
| D. Loss of use | Extra living costs while you're displaced | Often about 20% of A |
| E. Personal liability | Injuries or damage you cause to others | At least $100,000 |
| F. Medical payments | Small medical bills for guests, regardless of fault | Often $1,000 to $5,000 |
These are typical figures from state regulators and the Insurance Information Institute (III). Your declarations page shows your actual limits.
Coverage A: Dwelling
Dwelling coverage pays to repair or rebuild the house itself and anything attached to it, like an attached garage or deck. It's the most important number on the policy, because the next three coverages are usually set as a percentage of it. Set it at the cost to rebuild, not the market value; seehow much dwelling coverage you need.
Coverage B: Other structures
Other structures coverage pays for buildings and structures on your property that aren't attached to the house: a detached garage, shed, workshop, gazebo or fence. Washington's insurance commissioner says it's typically 10% of your dwelling coverage, so a $300,000 dwelling limit gives you about $30,000. Structures you rent out or use for a business are usually excluded. If you have a large outbuilding, ask to raise the limit.
Coverage C: Personal property
Personal property coverage pays for your belongings: furniture, clothes, appliances, electronics and the rest. It's generally 50% to 70% of the dwelling limit. It also follows you: things stolen from your car or a hotel room are usually covered, though many policies cap off-premises coverage at 10% of the personal property limit.
Check whether your policy pays replacement cost or actual cash value for belongings. Actual cash value subtracts depreciation, which can leave you with a fraction of what it costs to buy new. Our guide toreplacement cost vs. actual cash value explains the difference.
Coverage D: Loss of use
If a covered loss like a fire makes your home unlivable, loss of use (also called additional living expenses) pays the extra costs of living somewhere else: a rental or hotel, higher meal costs, extra mileage. It pays the difference above your normal spending, so it doesn't cover your regular mortgage payment. Washington's regulator says it typically caps at 20% of the dwelling limit, and some policies also set a time limit. Keep every receipt.
Major water damage is one of the most common reasons families end up displaced while repairs are done. If you're dealing with that now, our sister site Home Water Damage Help explainswhat water damage restoration costsand what to do when a pipe bursts.
Coverage E: Personal liability
Liability coverage pays if you or a family member accidentally injures someone or damages their property, at your home or elsewhere, including your legal defense. Most policies start at $100,000. The III recommends at least $300,000 to $500,000, and most umbrella insurers require $300,000 of underlying liability before they'll sell you an umbrella policy.
Dog bites are a big source of these claims. The III reports 28,450 dog-related injury claims in 2025, averaging $65,450 each.
Coverage F: Medical payments to others
Medical payments coverage pays small medical bills for guests injured at your home, whether or not you were at fault, which can head off a larger liability claim. Washington says most policies include at least $1,000, and the III says $1,000 to $5,000 is generally available. It doesn't cover you or people who live with you.
Special limits on valuables
Personal property coverage has lower sub-limits for certain categories, often called special limits of liability. Categories commonly capped include:
- Cash
- Jewelry, watches and furs (theft)
- Firearms
- Silverware
- Stamps, coins and collectibles
- Business property kept at home
The amounts vary widely by insurer and form. As examples, the Texas Department of Insurance cites sample limits of $100 for cash and $500 for jewelry and watches, while the III says jewelry is generally capped around $1,500. To cover an engagement ring, art or a collection at its full appraised value, add a scheduled personal property endorsement or a separate floater.
Make a home inventory
A home inventory makes it far easier to choose your personal property limit and to prove a claim. The California Department of Insurance suggests photographing or filming every room, including closets and drawers, recording serial numbers and receipts for expensive items, storing copies in at least two places, at least one outside your home,, and updating the inventory regularly.
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Common questions
What is personal property coverage?
Personal property (Coverage C) pays to repair or replace your belongings, like furniture, clothes and electronics, after a covered loss such as fire or theft. It is usually set at 50% to 70% of your dwelling limit, and it covers your things away from home too, often up to 10% of the limit.
What does loss of use cover?
Loss of use (Coverage D), also called additional living expenses, pays the extra cost of living elsewhere while your home is being repaired after a covered loss: the difference between your temporary costs and your normal ones, such as hotel bills and extra meal costs. It does not pay your mortgage.
What counts as other structures on a home insurance policy?
Structures not attached to your house, such as a detached garage, shed, fence or gazebo. Coverage is typically 10% of your dwelling limit, and structures you rent out or use for business are usually excluded.
Can I raise my personal property or other structures limit?
Yes. Most insurers let you raise these limits for an extra premium. If you have a large detached garage or workshop, or more belongings than the default percentage would cover, ask for a higher limit.
How this guide was made
We drafted this guide with help from AI writing tools, working from the sources listed below. Every fact was checked against those sources, and Marcus L. Barber read and reviewed the full page, including its title, description and FAQs, before it was published. AI tools don't decide what we publish; a person does. Our editorial standards.
Sources
- Homeowner insurance guide, Washington Office of the Insurance Commissioner
- Understanding basic homeowners insurance, South Carolina Department of Insurance
- How much homeowners insurance do I need?, Insurance Information Institute
- Homeowners insurance basics, Insurance Information Institute
- Renters insurance, Insurance Information Institute
- Renters insurance, Texas Department of Insurance
- Renters insurance claim tips, United Policyholders
- Home inventory guide, California Department of Insurance
- Dog-related injury claims on the rise in 2025, Insurance Information Institute
- A Consumer's Guide to Home Insurance, National Association of Insurance Commissioners