What are the limits in the standard Homeowners Policy?

(Note: this answer is based on the Insurance Services Office’s HO-3 policy.) Coverage A and B cover your dwelling and other structures on the premises subject to certain exclusions. On HO form 3 Special Form any peril NOT excluded would be covered.

You set the limit for Coverage A when you buy the policy. The Coverage B limit is usually equal to 10% of the policy limit on Coverage A. Coverage C covers losses to your personal property on a “named perils” basis, which means you’re covered for all the perils specifically named on your policy. The policy limit on Coverage C is equal to 50% of the policy limit on Coverage A. Coverage D covers extra expenses you may incur when the residence can’t be used because of an insured loss. The policy limit for Coverage D is equal to 20% of the policy limit on Coverage A. You choose the Coverage E – personal liability -limit when you buy the policy. The limit on Coverage F – medical payments to others – is usually set at $1000 per injured person. Individual companies may vary. Additional amounts of coverage can be purchased as needed.