This article is the second in our four-part series on understanding your homeowners insurance policy. After reviewing the Declarations Page in Part 1, the next step is to look at the core property protections: Coverages A through D. These sections describe how your home, detached structures, personal property, and even temporary housing are covered after a loss.
For Colorado homeowners, these protections are especially critical. From hailstorms on the Front Range to wildfires in the foothills and heavy snow in the mountains, risks can strike anywhere. Understanding how Coverages A–D work ensures that your policy reflects the realities of living in Colorado.
Coverage A: Dwelling
Coverage A protects the main structure of your home — the walls, roof, floors, windows, and attached features such as an attached garage, deck, or porch. It is the single largest coverage amount on your policy and is designed to pay for repair or complete reconstruction if your home is damaged or destroyed by a covered peril.
Unlike market value, which reflects the price your home might sell for, Coverage A is based on replacement cost — the amount it would take to rebuild your home with similar materials and workmanship. This distinction is critical in Colorado, where construction costs are highly sensitive to labor availability and supply chain pressures.
What Coverage A Does Include:
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The home’s structural components (walls, roof, doors, windows, flooring).
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Built-in appliances (e.g., a built-in oven, not a countertop microwave).
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Permanently installed fixtures (cabinets, plumbing, central HVAC).
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Attached structures such as a garage, deck, or porch.
What Coverage A Does Not Include:
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Detached structures (those fall under Coverage B).
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Personal property (covered under Coverage C).
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Land value (insurance doesn’t cover dirt).
To put his coverage in context, after catastrophic losses such as the Marshall Fire in Boulder County, many homeowners discovered that their Coverage A limits did not reflect current rebuilding costs. With construction inflation and stricter codes like wildfire-resistant roofing and defensible space requirements, rebuilding can cost far more than expected. Regularly reviewing your dwelling limit is essential to avoid a significant coverage gap.
Claim Example: A wildfire in Boulder County damages your home’s roof and siding. Repairs cost $180,000, but your dwelling limit is $800,000. Coverage A pays for the repairs (minus your deductible).
Additional Example: A total loss for a home in Windsor reveals a dwelling limit of $850,000 while actual rebuild costs reach $950,000. Without extended or guaranteed replacement cost coverage, the $100,000 shortfall becomes the homeowner’s responsibility.
Professional Tip: Think of Coverage A as the “backbone” of your policy. If this number is too low, every other part of your coverage will feel the strain.
Coverage B: Other Structures
Applies to structures not attached to your home, such as detached garages, barns, fences, or sheds. This limit is usually 10% of Coverage A, though it can be adjusted.
Many rural properties like those in Strasburg, include barns, workshops, or multiple outbuildings. Ensuring adequate Coverage B is critical in agricultural and mountain communities.
Example: A strong windstorm in collapses a detached barn valued at $50,000. If your Coverage B limit is only $30,000, the policy pays $30,000, and you cover the remaining $20,000.
Coverage C: Personal Property
Protects your belongings, both inside and outside the home. This includes furniture, clothing, appliances, electronics, and personal items. Standard policies usually provide 50–70% of the dwelling coverage for personal property.
A simple way to understand the difference between personal property and building property is to imagine turning your house upside down and giving it a good shake. Everything that “falls out” is personal property — furniture, lamps, clothing, dishes, TVs, skis, bikes, and even the coffee machine. What stays bolted down — walls, floors, cabinets, and countertops — is part of the dwelling coverage under Coverage A.
With active lifestyles, many residents own high-value outdoor gear like skis, mountain bikes, and camping equipment. Policies also impose sublimits on jewelry, firearms, and collectibles, so additional endorsements may be necessary.
Example: While mountain biking in Summit County, your Aurora condo is burglarized and $12,000 in electronics and outdoor gear is stolen. Coverage C pays the loss, subject to policy limits and sublimits for high-value categories.
Coverage D: Loss of Use
Pays for additional living expenses if your home becomes uninhabitable after a covered loss. This may include hotel stays, short-term rentals, restaurant meals, and extra transportation costs. Temporary housing costs are a growing concern, especially in mountain towns where short-term rentals are in high demand and affordable housing is scarce. Coverage D can make the difference between financial stress and a manageable recovery.
Claim Example: After a fire in Colorado Springs, your family must move into a hotel for three weeks. Coverage D reimburses lodging and meal expenses up to the limit listed on your policy.
Coverages A–D form the foundation of your homeowners insurance policy. They define how much protection you have for your dwelling, detached structures, belongings, and temporary living expenses. For Colorado homeowners, the stakes are higher due to hailstorms, wildfires, and rapidly increasing rebuild costs. Reviewing these limits carefully — and updating them as conditions change — is essential to ensure that your coverage truly matches your needs.
This article was created with the assistance of AI and reviewed for accuracy.
