Texas General Lines — Property and CasualtyPersonal LinesEasy
A client is considering purchasing a Homeowners policy. They are confused about the difference between Coverage A (Dwelling) and Coverage B (Other Structures). Which of the following best clarifies this distinction?
- ACoverage A is for structural damage, and Coverage B is for liability arising from the property.
- BCoverage A is for the main house, and Coverage B is for personal property within the house.
- CCoverage A is for the main house and attached garages, while Coverage B is for the land on which the house sits.
- DCoverage A is for the main house, and Coverage B is for structures separated from the main house by a clear space.
Show answer & explanationAnswer & explanation
Correct answer: D. Coverage A is for the main house, and Coverage B is for structures separated from the main house by a clear space.
Coverage A (Dwelling) covers the primary dwelling structure, including attached structures like garages. Coverage B (Other Structures) specifically covers structures on the premises that are separated from the dwelling, such as detached garages, sheds, or gazebos.
Why the other options are wrong
- A. Liability coverage is found in Section II of the homeowners policy, not under Coverage B.
- B. Coverage C covers personal property, not Coverage B.
- C. Land is not covered under any part of a standard homeowners policy.
HO Coverage A vs. B
In a Homeowners policy, Coverage A (Dwelling) insures the main residential structure and attached structures, while Coverage B (Other Structures) insures detached structures on the same premises.
- Coverage A includes attached garages, decks.
- Coverage B includes detached garages, sheds, gazebos.
- Coverage B limit is typically a percentage of Coverage A.
Memory trick: A is for 'Attached' home, B is for 'By itself' buildings.