What are the policy limits in the “standard” homeowners policy?
While not all policies are the same, these are customary limits that most policies adhere to. The dwelling and other structures on the premises are protected on an “all risks” basis up to the policy limits. “All risks” means that the policy covers any risks not specifically excluding the manner in which the home is damaged or destroyed. Policy limits for other structures is equal to 10% of the dwelling amount. Losses to personal property are covered on a “named perils” basis. “Named perils” means that your property is covered only when damaged or destroyed in a manner specifically described in the policy. The policy limit on this coverage is normally equal to 70-75% of the limit on the dwelling. Additional expense limits that may be incurred by the property owner when the residence is unusable because of the insured loss are equal to 20-50% of the limit on the dwelling. The policy owner determines the personal liability limit at the time the policy is issued. However, $100,000 is stand
