Reading through a Texas homeowners insurance policy can feel like learning a new language. You’ll often see terms like Coverage A, Coverage B, Coverage C, and Coverage D. These categories may seem confusing, but they’re actually simple building blocks of your policy.
In this article, we’ll explain each coverage in plain language, show why it matters for Texans, and help you see how they work together. By the end, you’ll feel more confident comparing policies and making smart decisions about your coverage.
Coverage A – Dwelling Coverage
Coverage A protects the physical structure of your home. Think of it as the foundation of your policy. It includes the roof, walls, foundation, attached garage, and built-in appliances.
Why it matters:
If a hailstorm rips through Houston and damages your roof, Coverage A pays for the repair or replacement. Without it, you’d be on the hook for tens of thousands of dollars.
Tips for Texans:
- Make sure your dwelling coverage limit matches the rebuild cost, not the market value.
- Homes in coastal or storm-prone areas may require higher dwelling limits due to wind and hail risks.
Coverage B – Other Structures
Coverage B extends protection to buildings and features not attached to your home, such as:
- Detached garages
- Fences
- Storage sheds
- Guest houses
Example: A windstorm knocks down your backyard fence. Coverage B steps in to pay for repairs.
Texas Note: Many suburban neighborhoods have fences, and hail or wind damage to them is common. Coverage B ensures those costs don’t come out of pocket.
Coverage C – Personal Property
Coverage C protects the belongings inside your home, including:
- Furniture
- Electronics
- Clothing
- Appliances
It often extends beyond the home too. For example, if your laptop is stolen from your car, Coverage C may help replace it (within limits).
Key Points:
- Create a home inventory to make claims easier.
- High-value items like jewelry or collectibles may need additional endorsements.
Texas Insight: With the rising cost of electronics and furniture, Coverage C helps families bounce back quickly after a fire, theft, or storm.
Coverage D – Loss of Use
Coverage D pays for extra living expenses if your home becomes unlivable after a covered loss. This may include:
- Hotel stays
- Rental homes or apartments
- Restaurant meals
- Storage costs
Example: A hurricane damages your roof, forcing you out for two months. Coverage D helps cover hotel bills and meals while repairs are made.
Why it matters in Texas: Damage from wind or fire can make a home uninhabitable for weeks. Loss of Use ensures your family isn’t left scrambling.
How These Coverages Work Together
Each coverage plays a different role, but together they form the foundation of a Texas homeowners policy. Here’s how they connect:
- Coverage A repairs the structure.
- Coverage B takes care of detached buildings.
- Coverage C replaces your stuff.
- Coverage D helps you live comfortably while waiting for repairs.
Without one of these, you’d face big financial gaps.
Why Work With an Independent Agency
Understanding Coverages A–D is just the beginning. The tricky part is knowing how much of each you need. That’s where guidance helps.
At TX Insurance Finder, powered by Hi-Lo Insurance, we work with multiple carriers to help you compare policies. Instead of being stuck with one option, you’ll see different limits, deductibles, and prices side by side — and we’ll explain them in plain English.
Conclusion
Coverage A, B, C, and D are the backbone of homeowners insurance in Texas. Knowing how they work gives you the power to choose wisely, protect your home, and avoid surprises when it’s time to file a claim.
Ready to compare your options? Visit our Home Insurance in Texas page to learn more and request a personalized quote today with TX Insurance Finder, powered by Hi-Lo Insurance.
