Ch 2 · Reading Your Policy Like an Adjuster
Module 2.2
Coverages A through F
6 coverages on every standard FL policy. Sub-limit traps. Pool cage gotcha. Defaults that almost always need raising.
12 min read
What you'll learn
The 6 lettered coverages on every standard FL homeowner policy. What each one pays. Where the sub-limits hide. The defaults carriers set that almost always need raising.
2.2.1 The 6 coverages at a glance
| Coverage | What it covers | Default limit (HO-3) |
|---|---|---|
| A — Dwelling | Your home structure + attached parts | Set by you (drives everything else) |
| B — Other Structures | Detached structures (fence, shed, detached garage, gazebo) | 10% of Coverage A |
| C — Personal Property | Contents — furniture, electronics, clothing, kitchenware | 50% of Coverage A |
| D — Loss of Use / ALE | Living expenses while home is uninhabitable | 20–40% of Coverage A |
| E — Personal Liability | If someone sues you for injury/damage | $100K–$500K standard |
| F — Medical Payments to Others | No-fault medical coverage for guests injured on your property | $1K–$5K |
These percentages are policy defaults. Your actual limits live on the dec page.
2.2.2 Coverage A — Dwelling
What it covers: the structure of your home, including:
- Walls, roof, foundation
- Built-in cabinets, fixtures, plumbing, HVAC
- Attached structures — attached garage, attached deck, attached porch
What it does NOT cover:
- Detached structures (those are Coverage B)
- Land or land value
- Personal property inside the home
How carriers set Coverage A
Carriers use replacement-cost calculators (e.g., Marshall & Swift, e2Value) to estimate rebuild cost. The number you see on the dec page is what they think it would take to rebuild from scratch.
Underinsurance is the silent killer. FL construction costs +30% in 5 years. Coverage A often hasn't kept up. 20% gap on a $500K rebuild = $100K out of your pocket.
How to verify your Coverage A is right
- Get a current rebuild-cost estimate from an independent contractor or replacement-cost service.
- Compare to your dec page Coverage A.
- If the estimate is more than 5–10% above your Coverage A — call your agent and increase it before any loss.
2.2.3 Coverage B — Other Structures
Default: 10% of Coverage A. So $50K Coverage B on $500K Coverage A.
What it covers:
- Detached garage
- Shed
- Fence
- Gazebo, pergola
- Driveway, walkway
- Detached deck (if not attached to dwelling)
The pool cage trap
In Florida, screened enclosures and pool cages are typically classified as Other Structures. Coverage B may not be enough.
A real example: $80K replacement cost on a destroyed pool cage. 10% Coverage B on a $400K dwelling = $40K available. $40K shortfall.
Fix: raise Coverage B specifically (or get a screened-enclosure endorsement) BEFORE the storm.
Other Coverage B traps
- Fence damage from a hurricane — often in the thousands
- Detached garage total loss — can run $50K+
- Driveway crack repair — often denied entirely under wear-and-tear
2.2.4 Coverage C — Personal Property
Default: 50% of Coverage A. $250K on a $500K dwelling.
What it covers: everything inside your home that's not built in.
- Furniture
- Electronics
- Clothing
- Kitchenware
- Tools
- Sports/hobby equipment
- Some outdoor items (lawn equipment, grills)
Sub-limits — where carriers cap individual categories
This is where most homeowners get blindsided. Even if your overall Coverage C is $250K, specific categories have separate sub-limits inside that.
| Common category | Typical sub-limit |
|---|---|
| Jewelry, watches, furs (theft) | $1,500–$5,000 |
| Firearms (theft) | $2,500 |
| Silverware, goldware (theft) | $2,500 |
| Money, bullion, coins | $200–$500 |
| Securities, deeds | $1,500 |
| Trailers (not used w/ watercraft) | $1,500 |
| Watercraft (incl. trailers, motors) | $1,500 |
| Business property (on premises) | $2,500 |
| Business property (off premises) | $500 |
| Electronics (in some policies) | $2,500–$5,000 |
The trap: you have $250K Coverage C, but a single piece of jewelry worth $20K is capped at $1,500 unless scheduled on a separate endorsement.
Scheduled property endorsement
For valuable items (jewelry, firearms, art, collectibles), you list each item with appraisal/photos on a scheduled property endorsement. Each item gets its own coverage limit, no theft sub-limit.
Cost: usually 1–2% of the scheduled value per year.
ACV vs RCV on Coverage C
Default in many FL policies: Coverage C pays at ACV (depreciated value), not RCV.
A 5-year-old TV that cost $1,000 might be worth $300 ACV. You get $300, not $1,000 to replace it.
Fix: add a Replacement Cost on Contents endorsement. Often inexpensive ($25–$100/year). Worth it.
2.2.5 Coverage D — Loss of Use / ALE
Default: 20–40% of Coverage A. $100K–$200K on a $500K dwelling.
What it covers: the increased cost of living elsewhere when your home is uninhabitable from a covered loss.
Reimbursable expenses include:
- Hotel or rental housing
- Restaurant meals above normal grocery spend
- Pet boarding
- Laundry
- Storage for your belongings
- Increased commute costs (in some cases)
Save every receipt. ALE is the most under-claimed coverage in FL. Homeowners forget to track these expenses or never claim them.
When ALE kicks in
Triggered when the home is uninhabitable due to a covered loss. "Uninhabitable" generally means no power, no water, structural unsafety, or the home is being repaired and you can't reasonably live there.
How long ALE lasts
Most FL policies pay ALE for the "reasonable time" required to repair or replace. Some cap at 12 or 24 months.
Tip: if repairs are dragging because of contractor backlog or carrier delay, document every day. ALE keeps running. Carriers will try to cut it off prematurely.
ALE math example
$3,500/month rental + $1,200/month food premium + $200/month pet boarding = $59,000 over 12 months. Most homeowners under-claim by $20K+ because they didn't keep receipts.
2.2.6 Coverage E — Personal Liability
Standard: $100K–$500K. Some umbrellas raise to $1M+.
What it covers:
- Someone is injured on your property and sues you
- You injure someone or damage their property elsewhere
- Includes legal defense costs
What it does NOT cover:
- Intentional acts
- Business activities (need separate business coverage)
- Auto accidents (auto policy covers those)
- Many dog bite scenarios (depending on breed/policy exclusions)
When to raise it
If your net worth exceeds $500K — strongly consider an umbrella policy for $1M–$5M of liability coverage. Cost: usually $200–$500/year for $1M.
2.2.7 Coverage F — Medical Payments to Others
Standard: $1,000–$5,000.
What it covers: small medical expenses for guests injured on your property — regardless of fault.
What it does NOT cover:
- You or household members
- Tenants or roomers
- Major injury claims (those go through Coverage E liability)
Why it matters
Coverage F is no-fault. A guest trips on your stairs, sprains an ankle, $500 ER bill. Coverage F pays. Avoids the friendship-ending awkwardness of "I have to sue you."
Standard limits ($1K–$5K) are usually fine. Very rarely worth raising.
2.2.8 The defaults that almost always need raising
| Coverage | Default | Real-world need (median) |
|---|---|---|
| B — Other Structures | 10% of A | 15–25% if you have pool cage / detached structures |
| C — Personal Property | 50% of A | Often fine; raise if collections/scheduled items |
| D — Loss of Use | 20% of A | 30–40% in high-rent FL markets (Miami, Naples, Keys) |
| E — Liability | $100K | $300K–$500K minimum; umbrella above $500K net worth |
| Mold sub-limit | $5K–$10K | $25K+ if water-loss prone area |
| Ordinance and Law | 10% of A | 25%+ in older FL homes (covered in Module 2.6) |
Time to act: at policy renewal, not at claim time. By the time the claim happens, you have what you have.
2.2.9 Action steps
- Pull your dec page. Write down the dollar limits for A, B, C, D, E, F.
- Check Coverage A against current rebuild cost (independent estimate).
- Walk your house. Add up rough value of contents. Compare to Coverage C limit.
- Identify any high-value items (jewelry, firearms, collections) → check sub-limits → consider scheduled endorsement.
- Confirm ALE limit (Coverage D) is enough for 12+ months at FL rental rates.
Next: 2.3 Exclusions, Endorsements, and Sub-Limits.
Educational. Not legal advice. Policy provisions vary by carrier and form (HO-3, HO-5, HO-6, HO-8, etc.). Verify your specific policy language before relying on any limit or sub-limit.