Homeowners Insurance Policysection I (property Coverage)

Definition of "Homeowners insurance policysection i (property coverage)"

Emanuele Pani real estate agent

Written by

Emanuele Panielite badge icon

Signature International Real Estate

Section providing protection in four areas:

  1. Coverage A (Home) the structure of the home (basic contract amount). Other property coverages in Section I are expressed as a percentage of Coverage A.
  2. Coverage B (Garage or Appurtenant Private Structures) structures not attached to or part of the home, covered up to 10% of the basic home structure.
  3. Coverage C (Contents or Personal Property) coverage of 40 to 50% (depending on the form selected) of the structural coverage of the home for the contents or personal property in the home; coverage of up to 10% applies to contents away from the home. For example, a home whose value is $100,000 would have coverage on the contents of $50,000 (assuming 50% contents coverage); away from home, contents coverage would be up to $5000.
  4. Coverage D (Additional Living Expenses) coverage if the home is damaged or destroyed and the insured must seek temporary lodging. Reimbursement is 10 to 20% of the structural coverage of the home, depending on the form selected.

All four property coverages A, B, C, and D are offered through one of the following forms:

  1. Form No. 1 (Basic or Standard) coverage for fire, lightning, windstorm, hail, explosion, smoke, theft, vandalism, malicious mischief, riot, civil commotion, glass breakage, vehicles, and aircraft.
  2. Form No. 2 (Broad) coverage for a broader spectrum of perils than under Form No. 1.
  3. Form No. 3 (Special) provides that Coverage A (Home), Coverage B (Garage or Appurtenant Private Structures), and Coverage C (Contents or Personal Property) are insured on an ALL RISKS basis. This form issometimes called "landlords and tenants insurance" since the building and garage or appurtenant private structure and contents are covered on an all risks basis. There are a number of exclusions under Form No. 3.

    Need help as a:

    I'm interested to:


    I work in:

    Reach out to the local professionals for help
    I agree to receive FREE real estate advice.

    Agents, get listed in your area. Sign up Now!

    Here's what you'll get:

    1. Full zipcodes coverage for the city of your choice for 3 months

    2. The ability to reach a wider audience

    3. No annual contract and no hidden fees

    4. Live customer support/No robo calls

    $75 - Any City - 3 Months Coverage
    loader gif

    Please wait ...

    I agree to receive FREE real estate advice
    I agree with Terms & Conditions and Section 5-5.9.
  5. Form No. 4 (Contents Broad Form)coverage only for the contents of a dwelling (Coverage C) and additional living expense(Coverage D) as the result of the perils listed in Form No. 2. This form is called the "renters form" since it does not cover damage to the structure of an apartment building, its garages or appurtenants. 5. Form No. 6 (Condominium Unit Owners Form) provides the same coverage as Form No. 4 but extends coverage for damage to additions and/or alterations that the unit owner may have made inside the unit. Coverage goes into effect as an excess amount above that insurance (if any) that the condominium association may have.

Numerous endorsements can be added to each one of the above forms to increase the limits of coverage and the properties insured. For example, specified property such as jewelry, furs, silverware, and guns can be added through a valuable personal articles endorsement. Also, an inflation guard endorsement (reflecting increases in the cost of construction) can be added to Coverage A, which automatically increases Coverages B, C, and D, since they are expressed as a percentage of Coverage A. The insured is obligated to take certain actions following a loss, including: notifying the company or agent immediately; if the loss is due to theft, notifying the police immediately; if credit cards are stolen, notifying the credit card company immediately; and protecting the property from further damage. There is usually an 80% coinsurance requirement which means that the insured must carry insurance on a replacementcost basis of at least 80%.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.


Popular Insurance Terms

Company that has a capital fund established by contributions from its stockholders in addition to its surplus accounts and reserve accounts. ...

Premium required by an insurance company for plans subject to premium adjustment. The initial provisional premium is paid to put a commercial property or liability insurance policy into ...

Part of the business risk exclusion in general liability insurance that denies coverage for subsequent claims if a defective product is not recalled by an insured. For example, if a ...

Form of inland marine insurance under which an insured is indemnified for damage or destruction of his or her on-premises property if it is due to radioactive material stored or used within ...

Term used in the reinsuring of disability income insurance policies in that, after an extended period of time expires (in addition to the elimination period found in the disability income ...

Insurance company that puts together a consortium of insurance and reinsurance companies to provide an adequate financial base with sufficient underwriting capacity to insure large risks. ...

Offer made by the insurance company to insure an applicant, provided the applicant is insurable according to the underwriting standards of the company, and the applicant accepts the offer ...

Cost per unit of insurance. ...

Life insurance under which an insured receives the face value of a policy if the individual survives the endowment period. If the insured does not survive, a beneficiary receives the face ...

Popular Insurance Questions