[Note: this answer is based on the Insurance Services Office’s HO-3 policy.]

Coverages A and B provide protection to the dwelling and other structures on the premises on an “all risks” basis up to the policy limits. The insurance policy limit for Coverage A is set by the policyowner at the time the insurance is purchased. The insurance policy limit for Coverage B is usually equal to 10% of the insurance policy limit on Coverage A. Coverage C covers losses to the insured’s personal property on a named perils basis. The insurance policy limit on Coverage C is equal to 50% of the insurance policy limit on Coverage A. Coverage D covers the additional expenses that the policy owner may incur when the residence cannot be used because of an insured loss. The insurance policy limit for Coverage D is equal to 20% of the insurance policy limit on Coverage A. The insurance coverage limit on Coverage E – Personal Liability – is determined by the policy owner at the time the insurance policy is issued. The insurance coverage limit on Coverage F – Medical Payments to others – is usually set at $1000 per injured person.