A policy that bundles coverage for your home's structure, personal belongings, liability protection, and additional living expenses into one package. The most common form is the HO-3 policy, which covers the dwelling on an open-peril basis and personal property on a named-peril basis.
Related Terms
Additional Living Expenses
Homeowners insurance coverage that reimburses you for extra costs incurred when you cannot live in your home due to a covered loss. Also known as ALE or loss of use, it covers hotel bills, restaurant meals, and other temporary living costs above your normal expenses.
Dwelling Coverage
The part of a homeowners insurance policy that pays to repair or rebuild the physical structure of your home if it is damaged by a covered peril such as fire, wind, or hail. Dwelling coverage should equal your home's estimated rebuilding cost, not its market value.
Personal Property Coverage
The portion of a homeowners or renters insurance policy that pays to repair or replace your belongings — furniture, electronics, clothing, and more — if they are damaged or stolen. Coverage typically applies both inside your home and anywhere in the world.