Understanding Your Property Insurance Policy
- David Reyes
- Mar 26
- 3 min read
A Simple Guide to Knowing What You're Actually Covered For
Most homeowners don’t read their property insurance policy until something goes wrong. But when storm damage hits your roof, water seeps into your basement, or your belongings are ruined, knowing what your policy does (and doesn’t) cover makes all the difference.
This guide breaks down the key parts of a standard property insurance policy so you can feel more confident — and more protected — before disaster strikes.
What Is Property Insurance?
Property insurance helps protect your home, belongings, and sometimes even your finances in the event of damage, theft, or liability claims. It’s not just one blanket coverage — it’s made up of several sections that each serve a different purpose.
Key Sections of Your Policy to Understand
1. Declarations Page
This is the summary of your policy. It includes:
Your policy number
Coverage start and end dates
The amount of coverage for your home and belongings
Deductibles you’re responsible for before insurance kicks in
Tip: Always keep a digital and printed copy of your declarations page — it’s the first thing adjusters and contractors will ask for.
2. Dwelling Coverage (Coverage A)
This covers the structure of your home — walls, roof, foundation, and permanently attached fixtures like cabinets and plumbing.
For example: If a windstorm rips shingles off your roof, this is the coverage that would handle repairs (after your deductible).
3. Other Structures (Coverage B)
This includes things like:
Detached garages
Fences
Sheds
Carports
If these are damaged in a storm or accident, Coverage B helps pay for repairs or replacement.
4. Personal Property (Coverage C)
This covers your belongings: furniture, clothes, electronics, appliances, etc.
Most policies cover them even if the damage happens outside the home (e.g., theft from your car).
There are limits on high-value items like jewelry or collectibles unless you schedule them separately.
5. Loss of Use / Additional Living Expenses (Coverage D)
If your home becomes uninhabitable due to a covered loss (fire, storm damage, etc.), this helps pay for:
Temporary housing
Meals
Laundry
Transportation
6. Personal Liability (Coverage E)
Protects you if someone is injured on your property or if you accidentally damage someone else’s property. It can cover:
Medical bills
Legal fees
Court judgments
7. Medical Payments to Others (Coverage F)
Covers minor medical bills if someone is hurt on your property — without needing to prove liability.
Common Gaps in Coverage
Even if you have a solid policy, it might not protect against everything. Some key exclusions include:
Flood Damage: Not covered under standard policies. Requires separate flood insurance.
Earthquakes or Sinkholes: May require additional riders.
Roof Age: Some policies reduce coverage or deny claims based on roof age or wear and tear.
Cosmetic Damage: Mismatched shingles or small dents may not qualify for coverage.
Tips to Protect Yourself
Review your policy annually, especially after major purchases or home renovations.
Take a home inventory: Photos and receipts make the claim process easier.
Ask your agent for a plain-language explanation if you're unsure about your policy terms.
Know your deductibles: Wind and hail deductibles in Texas may be higher or calculated as a percentage of home value.
Bonus Tip (Texas Homeowners):
If your home is in a Texas coastal county or high-wind area, ask your insurance agent if your roof repairs must meet the International Residential Code (IRC) or International Building Code (IBC) — especially if you're filing a claim. TDI (Texas Department of Insurance) may require a WPI-8 Certificate of Compliance to confirm the roof was installed correctly and meets code.
Final Thoughts
Understanding your property insurance policy isn’t just smart—it can mean the difference between getting fully covered and paying thousands out of pocket. Review your policy regularly, ask questions, and don’t wait until it’s too late to understand your coverage.
Need Help Understanding Your Policy or Filing a Claim?
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