Homeowners Insurance Coverages A–F Explained

A standard homeowners policy is built around six core parts labeled A through F. These labels aren’t marketing fluff — they’re the map to what your contract actually pays for: your house itself (A), the detached things around it (B), your belongings (C), the cost of living elsewhere during repairs (D), your liability if you injure someone or damage their property (E), and small-limit medical payments for guests regardless of fault (F). Regulators and consumer guides note that Coverage A should be set high enough to rebuild the home, that the other property limits often scale from A as percentages, and that liability limits under E and F are amounts you choose. Knowing what each letter means — plus where deductibles, exclusions, and add-ons fit — prevents expensive surprises when you file a claim.

What “Coverages A–F” Mean

Coverage labels A–F follow a standard pattern across most homeowners policies, so once you learn this alphabet, you can read almost any declarations page more confidently.

• Coverage A (Dwelling): Insures the structure you live in — the house itself and anything attached, like an attached garage or built-in porch.
• Coverage B (Other Structures): Applies to things on your property not attached to the house, such as a detached garage, shed, or fence.
• Coverage C (Personal Property): Covers your movable stuff — furniture, clothing, electronics — at home and, within limits, off-premises.
• Coverage D (Loss of Use / ALE): Pays the extra cost to live elsewhere if a covered loss makes the home uninhabitable.
• Coverage E (Personal Liability): Steps in if you’re legally responsible for bodily injury or property damage to others, on or off premises.
• Coverage F (Medical Payments to Others): Covers smaller medical bills for guests injured at your home, typically without proving fault.

Policy limit mechanics are just as important as the labels. Regulators note that your Coverage A limit should match the reconstruction cost to fully rebuild the home — not its market value — and that several other property limits are automatically set as percentages of A unless you change them. By contrast, you choose the limits for Coverage E (liability) and Coverage F (med pay). You’ll also see whether your policy settles losses at replacement cost value (RCV) or actual cash value (ACV); RCV doesn’t subtract depreciation, while ACV does, which can lower payouts on older roofs or belongings unless you’ve added replacement-cost endorsements. HO-3/HO-5 form summaries and consumer explainers underscore these differences because they drive real claim outcomes.

Limits/percentages vary by insurer and state; many policies use the A-limit as the baseline for B–D, while E and F are customer-selected.

Property Protections A–C: Dwelling, Other Structures, Personal Property

Property coverages A–C work together to protect the structure and the things you own.

• Coverage A (Dwelling): The backbone of the policy. It should equal the cost to rebuild your home with current labor and materials, including attached features. Setting A too low risks a partial payout that doesn’t fully fund reconstruction; setting it based on “what houses sell for” can mislead because land value isn’t insured and construction inflation can outpace real-estate prices.
• Coverage B (Other Structures): Extends protection to structures not attached to your home. It’s typically a slice of A by default (such as ~10%), but you can raise it if your detached garage, fencing, or outbuildings are substantial.
• Coverage C (Personal Property): Protects belongings against covered perils, often anywhere in the world but with sublimits for certain items (jewelry, firearms, collectibles) unless you schedule them separately. Whether your belongings are settled at ACV or RCV is pivotal: ACV subtracts depreciation; RCV pays the amount to replace new, often via two checks (first ACV, then recoverable depreciation after you replace).

Not every peril is covered. Standard policies generally exclude flood, earthquakes/earth movement, and maintenance-related losses; floods are typically insured via the National Flood Insurance Program or private flood markets; earthquake can be an endorsement or separate policy. Another gap many homeowners discover too late is sewer or sump backup — it’s usually excluded unless you buy a specific endorsement. Reading these exclusions alongside your A–C limits is the only way to see your true risk picture. Authoritative primers from the Insurance Information Institute spell out these exclusions clearly so you can add endorsements before a claim, not after.

Coverage D (Loss of Use): How Additional Living Expense Actually Pays

Loss of Use does not replace every dollar you spend while you’re displaced — it covers the increase above your normal living costs when a covered loss makes your home uninhabitable. If you’re still paying your mortgage, you’ll keep paying it; ALE might cover the hotel or rental and increased meal costs up to your D limit. Typical covered items include:

• Hotel or short-term rent
• Increased food costs when you can’t cook normally
• Pet boarding
• Storage fees
• Extra mileage or transportation tied to the displacement

All of this is subject to policy language and reasonable necessity tied to the loss. Separate from ALE, some policies include “Fair Rental Value” if part of your home you rent out is damaged by a covered peril and you lose that income during repairs. Because D is often set as a percentage of A, it’s smart to sanity-check the dollar amount against local rents before a loss, especially in high-cost markets. NAIC’s consumer explainers emphasize keeping receipts and communicating frequently with your adjuster to align on what’s additional vs. normal.

Timing matters, too. Most policies require that the uninhabitability stem from a covered cause of loss, and adjusters will confirm habitability standards (utilities, safety) before approving extended stays. If your kitchen is being repaired but the rest of the home is livable, you might qualify for meal reimbursement but not a hotel — the “additional expense” standard governs. As repairs progress, the adjuster can ask for updated documentation and may cap certain line items based on local reasonable rates. If you reach the Coverage D limit before repairs finish, payments typically stop, which is another reason to set realistic limits before a loss. Clear communication up front about housing options (extended-stay hotels vs. short leases) can stretch the limit further.

Coverages E and F: Liability & Guest Medical

Coverage E (Personal Liability) defends and indemnifies you if you’re legally responsible for injuring someone or damaging their property — think a serious dog bite, a guest’s fall, or accidentally knocking a neighbor’s expensive item off a shelf. You choose the limit (commonly $300,000 or $500,000, sometimes higher), and the insurer typically provides or pays for an attorney to defend you, subject to policy terms. Because legal costs can dwarf medical bills, many homeowners raise E’s limit and, where appropriate, add an umbrella policy for extra liability protection above E.

Coverage F (Medical Payments to Others) is different: it pays limited medical expenses for guests injured at your home regardless of fault, often a few thousand dollars, which can soothe minor incidents without litigation. Industry guides present E and F together because they complement each other: F addresses small, no-fault injuries; E addresses negligence claims and defense.

Deductibles typically don’t apply to E and F, unlike A–C where a property deductible (and sometimes special wind/hurricane deductibles) can reduce payouts. Your liability protection also travels with you off premises for many situations, though there are notable exclusions (business activities, motor vehicles, certain dog breeds, or intentional acts) that vary by insurer and state. Choosing the right E limit is less about your house value and more about your total assets and risk tolerance; for many families, pairing $500,000 E with a $1–$2 million umbrella is a common, affordable structure. Med-pay’s small limit can be increased modestly, but it’s not a substitute for health insurance or liability limits.

Deductibles, Sublimits, and Common Exclusions to Watch

Your declarations page will list a property deductible — the amount you pay before A–C respond — and, in many coastal/wind-prone states, a separate percentage deductible for named storms or hurricanes. Unlike a flat $1,000 deductible, a 2% hurricane deductible is calculated on Coverage A; on a $400,000 A-limit, that’s $8,000 out of pocket if the trigger applies. Insurers and regulators explain that policies using named-storm or hurricane deductibles must clearly state when they apply and provide examples; it’s worth reading those pages closely each renewal.

Sublimits hide in plain sight. Coverage C usually caps categories like jewelry, watches, firearms, silverware, cash, and business property at low amounts for theft or all perils; you can “schedule” valuables or buy a personal articles floater to lift those ceilings. Ordinance or Law coverage — the extra cost to meet current codes — is another area where base limits may be small; older homes benefit from higher limits because code updates are common during rebuilds. Finally, exclusions are real: standard homeowners policies do not cover floods, earth movement, or wear-and-tear/maintenance; separate flood or quake coverage is the norm if you want protection. Sewer or sump backup is also excluded unless endorsed, even though sudden/accidental water damage (like a burst pipe) is typically covered. Reading the exclusions section side by side with endorsements is the fastest path to a complete protection plan.