Home Insurance Coverage Types Explained by a State Farm Agent

Posted on 2026-02-28 00:12:43

I have sat at too many kitchen tables after a fire or a hurricane to treat home insurance like a stack of paperwork. When you buy a policy, you are buying one phone call on one very bad day, and on that day you want the right language and the right limits already in place. That is what this guide is about. I am a State Farm agent, and I will walk you through what a standard homeowners policy actually covers, where it stops, and the choices that separate an average claim outcome from a great one.

The policy skeleton most people never see

Home insurance is a package policy. It wraps several distinct protections under one roof that all interact when a loss happens. In most State Farm insurance homeowners policies, you will see these core parts:

Coverage A, Dwelling, which insures the home itself. Coverage B, Other Structures, which handles detached items like a fence or shed. Coverage C, Personal Property, which protects your belongings. Coverage D, Loss of Use, which pays additional living expenses when you cannot live at home after a covered loss. Personal Liability, which protects you if you are legally responsible for injuries or property damage to others. Medical Payments to Others, which pays small medical bills regardless of fault for minor injuries on your property.

Those coverage letters are not marketing terms. They determine how a claim is routed, which deductible applies, and which sublimits or exclusions kick in. When I review a State Farm quote with a new homeowner, I start with the building and work outward, because that is how claims unfold.

Coverage A, where rebuilds succeed or fail

Coverage A should mirror what it costs to rebuild your home from the studs out at today’s local labor and material rates. It is not your purchase price and not your mortgage balance. I have seen a 1,900 square foot brick ranch cost 215 to 250 per square foot to rebuild after a kitchen fire spread into the attic. That rebuild number can move quickly with supply chain swings, code upgrades, and historic district rules.

A good agent will run a replacement cost estimator, ask about features that algorithms miss, and manually adjust for quirks like a custom staircase or imported tile. Pay attention to:

Extended replacement cost. Many State Farm insurance policies offer an additional percentage above Coverage A, often 10 to 50 percent, that can absorb inflation during a catastrophic year. Tornado years make prices jump. I have watched this rider save a rebuild that would have been underinsured by 80,000 dollars. Ordinance or law coverage. Building codes change. If you must add a sprinkler system or rewire to new code standards, base policies limit how much of that is covered unless you add the endorsement. Older homes, especially pre 1980s, benefit the most. Roof surfaces language. Carriers treat roofs differently based on age and type. Asphalt at 18 years old will not be treated like standing seam metal at five. Your policy may apply actual cash value on older roofs for wind and hail unless endorsed for full replacement cost. Ask directly how your roof is valued.

Coverage B, the forgotten line that matters after a storm

Other structures covers things that are not attached to the main dwelling, typically at 10 percent of Coverage A by default. On a 400,000 dwelling, that is 40,000 for fences, detached garages, pergolas, and backyard studios. In my area, backyard offices and premium fencing can blow through that default limit. If you have a detached garage with a loft or a large retaining wall, do not assume 10 percent will carry you. We can write a specific higher limit.

Coverage C, the moving target of your life

Personal property is everything that would fall out if someone picked up your house and shook it. Furniture, electronics, clothes, pots and pans, the contents of closets and drawers. Most policies set this as a percentage of Coverage A, often 50 to 70 percent. For a 400,000 dwelling, that creates 200,000 to 280,000 in coverage. Here is where two choices matter more than any other:

Replacement cost versus actual cash value. Replacement cost pays what it costs to buy new items of like kind and quality today. Actual cash value subtracts depreciation for age and wear. With ACV, that seven year old sofa may be valued at a fraction of what a new one costs. Many policies include replacement cost on contents, but not all. If you ever had to replace an entire closet of clothes for a family of four, you understand why replacement cost is worth it.

Sublimits for special categories. Jewelry, watches, firearms, silverware, and collectibles often carry small caps for theft losses, sometimes 1,500 to 5,000 dollars total for jewelry. That number surprises people. If your engagement ring is worth 8,000, you want it scheduled on a personal articles policy or added via an endorsement with an agreed value. I have filed too many burglary claims where the main friction was a jewelry sublimit that did what it was written to do.

Coverage D, how you keep life moving during a rebuild

Loss of Use pays the additional living expenses that come from being displaced. If a fire makes your home uninhabitable for four months, this coverage can fund a rental house, pet boarding if the rental does not allow pets, storage for undamaged property, and increased meal costs while you lack a kitchen. It tracks actual, reasonable expenses above your normal baseline. I review budgets with families to prevent surprises, like a rental market that jumps during a regional catastrophe. Limits vary by policy. Some use a percentage of Coverage A, others a time limit. In markets with tight rental supply, higher limits make a difficult season feel manageable.

Personal liability, the line that protects your assets

Personal liability is not about your house burning. It is about your dog nipping a neighbor or your teenager injuring a friend on a backyard trampoline. If you are found legally responsible for someone else’s injuries or property damage, liability can pay for legal defense and settlements up to the limit. Typical limits range from 100,000 to 500,000. I recommend at least 300,000 for most households, higher for those with significant assets or future income to protect. If you own a rental property, entertain frequently, or have risk factors like a pool, trampoline, or large dogs, consider a personal umbrella policy that adds another 1 to 5 million above both your home and car insurance liability.

Keep in mind, liability on your home policy generally does not cover motor vehicle accidents on public roads. That is what your auto policy is for. If you carry State Farm insurance for both home and car, coordination between the policies matters when you evaluate umbrella options.

Medical payments to others, the small but useful bandage

Medical payments is a no fault coverage designed for minor injuries to guests. If a delivery driver twists an ankle on your steps, this can pay a clinic bill quickly without getting into a long discussion about fault. Limits are small, often 1,000 to 5,000. It does not replace liability, but it cools down small situations that would otherwise escalate.

Deductibles, special deductibles, and what actually applies

Your base deductible applies to most property claims, commonly 1,000 to 2,500 dollars. Wind and hail, hurricanes, and named storms may carry separate deductibles, sometimes as a percentage of Coverage A. If you live in a coastal or hail prone area, a 2 percent wind deductible on a 500,000 home equals 10,000 out of pocket. I have seen homeowners discover this during a roof claim, which is not the right moment to do that math. Ask your agent point blank which deductibles apply by peril.

Water is tricky, and the policy treats it that way

Water causes more gray hair in this business than fire. Some water damage is covered. Some is not. The difference lies in the source and the path the water takes.

Sudden and accidental discharge from within the plumbing, like a burst supply line behind the washing machine, is generally covered. The damage to drywall, floors, and cabinets can be significant, and mold mitigation needs to begin immediately. Slow leaks, seepage, and long term humidity issues are typically excluded. That slow drip under the sink you ignored for months will not be a covered claim when the cabinet base finally crumbles.

Sewer and drain backup requires an endorsement. Without it, water that backs up through a floor drain or toilet is not covered. With the endorsement, you can select a limit to match your basement finish level. I advise finished basements to carry at least 10,000 to 25,000 for backup, more if you have high end flooring or a home theater.

Coverage does not include flood, which FEMA defines as water that affects at least two properties or two acres, typically from surface water, storm surge, or overflowing bodies of water. For that, you need a separate flood policy. Earthquake is another separate policy in most places. If you are unsure, ask your insurance agency to show you a flood map and walk through scenarios. I have a short list of homes in non obvious flood zones that took water during a stalled thunderstorm. Topography and drainage matter more than whether you are near a river.

Endorsements that homeowners overlook

Not every home needs every add on, but a few endorsements have earned their place.

Service line coverage, which handles underground utility lines for water, sewer, and electrical between the street and your home. When a tree root crushes a clay sewer line, the dig, repair, and landscaping restoration can run 8,000 to 20,000. Home systems or equipment breakdown coverage, which can protect major systems like HVAC, electrical panels, and appliances from sudden mechanical breakdown. This is not a home warranty, and it will not pay for age or maintenance. It can, however, cover a compressor failure in a four year old heat pump that is otherwise expensive and unexpected. Identity restoration, which gives you a case manager and reimburses costs related to identity theft. The claims I have seen are more about time and hassle than huge direct losses. The concierge service is what clients appreciate. Business property endorsements. A base policy often caps business property at home to a small amount, sometimes around 2,500. If you store inventory or expensive tools in the garage, tell your agent. We can raise limits or discuss a small commercial policy.

Condos, renters, and landlords, same principles with different edges

Condo unit owners need a different form. The condo association master policy handles the shell, but the condo policy covers interior finishes like flooring, cabinets, and built ins, plus personal property and liability. The exact split depends on the bylaws. I ask for the condo documents before setting limits, because I have seen master policies that stop at the studs, and others that insure to original specifications.

Renters insurance is the best value in the entire landscape. For a modest premium, you get personal property and liability protection. I have replaced everything a couple owned after an upstairs neighbor let a bathtub overflow and water cascaded down through the ceiling. The landlord’s policy repaired drywall. The renters policy took care of furniture, clothing, electronics, and temporary housing.

Landlord policies for rental homes need different assumptions. Tenants live differently than owners, and liability exposures change. Loss of rents coverage becomes important if a fire or pipe burst makes the home uninhabitable. If you upgrade a rental kitchen with quartz counters, make sure the dwelling limit keeps pace.

How I help clients set limits that fit

Setting limits is part math, part detective work. I walk the house or review detailed photos, measure square footage, and note material quality. I ask what it would take to feel whole after a loss. Here is the rhythm I follow:

First, verify rebuild cost with a detailed estimator, not a rough per square foot guess. Second, expand Coverage B if detached structures are significant. Third, inventory high value personal property and address special sublimits with scheduling. Fourth, right size Loss of Use based on local rental markets and family size. Fifth, set liability at a number that defends your net worth and future income, then coordinate with an umbrella if needed.

When families bundle their home and car insurance with one insurance agency, including State Farm insurance, we also secure multi line discounts and keep claim handling under one roof. That integration makes a difference during chaotic weeks.

Two claims that still shape how I advise

A Saturday morning kitchen fire. A grease flare up ignited a microwave and raced through cabinets into the attic. The family got out quickly. Coverage A rebuilt the kitchen and roof structure. Contents replacement cost let them buy new appliances and furniture. Loss of Use funded a short term rental in their school district for four months. The jewelry sublimit did matter, because smoke damaged a ring box on the dresser. They had scheduled that ring, so it was a non issue.

A September cloudburst in a neighborhood with mature trees. Twelve basements flooded when storm drains could not keep up. Those with sewer and drain backup endorsements had a clear path. Those without learned the hard rule about flood versus backup. One finished basement had 60,000 in damage to flooring, a bar, and media equipment. Their endorsement limit was 25,000, which covered the essentials but not every upgrade. Afterward, we raised their limit and installed a backwater valve. Insurance and mitigation go hand in hand.

Your roof, your claim, your real out of pocket

Roofs spark more debate than any other part of a home policy. Age, material, and local hail frequency set the rules. If your policy uses a separate wind or hail deductible as a percentage, a 2 percent deductible on a 600,000 home equals 12,000. That is a meaningful number in a replacement scenario. Some carriers apply actual cash value to older roofs for wind and hail. Ask your State Farm agent to confirm whether your roof is on replacement cost or actual cash value for wind. If an inspection notes granule loss or brittleness, it might trigger a different valuation. I have told homeowners to consider a proactive roof replacement after a near total hail season, because the policy terms and their risk tolerance pointed that way.

Discounts that are worth more than a line item

Bundling home and car insurance with one carrier often produces a significant discount. With State Farm insurance, the multi line savings can be material, and it makes umbrella policies easier to place. Monitored alarms, automatic water shutoff valves, newer roofs, and protective devices often lower premiums. Renovations that update electrical, plumbing, and heating systems usually help too. Tell your insurance agency about upgrades so they adjust both limits and pricing.

I have clients who bought a water sensor kit for under 300 dollars and caught a laundry room leak before it became a claim. That is the kind of practical step that keeps premiums steady and homes dry.

What to have ready for a State Farm quote

When you search for an insurance agency near me and sit down with a State Farm agent, a little preparation speeds up the process and improves accuracy.

The year built, square footage, and construction details, including roof age and material. Photos of kitchens, baths, and any custom features or detached structures. A short list of high value items to schedule, such as jewelry or fine art. Any prior claims in the last five years with dates and brief descriptions. Your current policy declarations page so we can compare apples to apples.

With those details, we can issue a State Farm quote that reflects the home you actually live in, not a generic model pulled from a database.

How claims really move, and how to help your future self

After a covered loss, most homeowners do three things in the first hour. They call family, they take photos, and they call me. The carrier opens a claim, assigns an adjuster, and lines up mitigation vendors like water extraction or board up services. Documentation during the first 48 hours helps compress the timeline. Receipts for emergency expenses, a simple spreadsheet of damaged items with rough values, and saved samples of flooring make a measurable difference.

If I could hand every client one small kit that would make the next year easier, it would include a hard drive backup, a home inventory, and a folder with scanned warranties. Which leads to one final practical exercise.

A simple home inventory starter list

You do not need a perfect catalog. Aim for good enough, and update annually.

Walk room to room with your phone and record short videos opening drawers and closets. Save serial numbers for big ticket items like TVs, laptops, and appliances. Keep receipts or screenshots for jewelry, instruments, and collectibles. Note the make, model, and size of flooring and tile for easier matching. Store the inventory in the cloud and share it with a spouse or trusted relative.

I have used a 12 minute video recorded at move in to settle a contents claim in under two weeks. You do not realize how many spatulas, pillows, or kids’ shoes State farm agent Danny Fernandez - State Farm Insurance Agent you own until you must list them from memory.

Trade offs, edge cases, and a little judgment

Two homes on the same street can deserve different coverage shapes. A retired couple with no pets and a one story brick home may choose a higher deductible and a moderate liability limit with an umbrella. A family with a pool, two teenage drivers, and frequent gatherings might invert those choices, taking a lower deductible and higher liability.

If your roof is older and the policy applies actual cash value for wind, you might invest in impact resistant shingles and ask about a premium credit. If you live near a creek that has never flooded, you still might buy a low limit flood policy and sleep easier during stalled storms. If you run a side business building custom furniture, your tools may need a commercial policy or an endorsement beyond the small business property limit at home.

Insurance does not eliminate risk. It funds recovery within a contract. The art is aligning that contract with the life you actually live, rather than the life a template assumes.

Working with a local agent, not just a website

There is nothing wrong with starting online. Many clients find my office while searching insurance agency near me, and we begin with a digital State Farm quote. The value shows up when we walk the house, pencil out rebuild costs, and talk through what would happen on day three of a real claim. A good State Farm agent will explain trade offs without pressure, translate exclusions into plain English, and remember the details of your home when the adjuster is juggling dozens of files after a storm.

I have stood on driveways with fire crews and in basements with restoration teams. I have watched families come back stronger because their policy fit the crisis. My job is to make that fit happen on the front end.

If you are reviewing your coverage or buying a home, bring your questions. Ask about replacement cost on contents. Ask where water is covered and where it is not. Ask which deductible applies to hail. Ask if your jewelry is scheduled and whether your detached garage is fully included. Ask how much rent Loss of Use would pay in your zip code.

That conversation is worth more than a rate sheet. It is the difference between hoping your policy works and knowing how it will respond when you need it.

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Landmarks Near Fort Lauderdale, Florida

Fort Lauderdale Beach – Popular oceanfront destination with shopping and dining.
Hugh Taylor Birch State Park – Scenic coastal park with trails and picnic areas.
Bonnet House Museum & Gardens – Historic estate and tropical gardens.
The Galleria at Fort Lauderdale – Major shopping mall nearby.
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Broward Health Imperial Point – Nearby regional medical facility.