Understanding Your Home and Property Policy Coverage

A basic homeowner’s policy from Travelers may protect you in four important ways if you have a covered loss:

  • Provide dwelling coverage to help repair or replace your home or a related structure such as a garage if they are damaged by a covered loss.
  • Provide contents coverage to help repair or replace your personal property if it is damaged by a covered loss or stolen.
  • Reimburse you for Additional Living Expenses (ALE) if you are temporarily unable to live in your home after a covered loss.
  • Provide liability coverage if a claim is made against you or anyone else covered by your policy.

It is important to note that there are policy coverage limits and factors such as depreciation that will impact how much you can receive for a covered loss. The payment process may vary depending on the type of coverage you have and/or the type of covered loss you experience. For example, if your policy provides Replacement Cost Value (RCV) coverage, you will receive your RCV payment after repairs have been completed or items have been replaced. Your policy will initially pay the Actual Cash Value (ACV).

Below is additional information you may find helpful. After reviewing your policy, we encourage you to speak to your agent or a Travelers representative if you have questions.

Dwelling coverage

Your Dwelling coverage limits are based on the estimated cost of rebuilding your home, but over time, economic changes – such as labor or material costs – could make rebuilding more expensive than initially anticipated. You’ll want to revisit your policy annually to make sure your coverage limits provide sufficient protection.

If you have a claim, your Travelers Claim professional may conduct an assessment of your home to help determine its reconstruction cost. If so, during this assessment, he or she will:

  • Measure the exterior of your home
  • Review your home’s characteristics and features, both inside and outside
  • Determine the style of construction (e.g., a colonial or ranch) and the type of materials used (e.g., vinyl siding or brick)
  • Create a reconstruction cost assessment and provide it to our underwriting team who will compare it to your current policy limits

Please note that homeowner’s policies contain exclusions and generally do not cover damage caused by such things as flood, surface water wear and tear, etc. Visit our Flood coverage page for more information. 

Contents coverage

Your contents, or personal property, are protected under your Contents coverage. These include any belongings that you would be able to take with you if you were to move. This generally means items that are not bolted down or permanently installed (e.g., clothing, most furniture).

All policies have coverage limits.  However, some types of property have special limits or “sublimits.” For instance, your homeowner’s policy will only reimburse you for a limited portion of the value of your loss on items such as jewelry, silverware, firearms, or cash if they are stolen or damaged.  To enhance your protection, these types of property can be insured separately using specific endorsements or separate policies.

Loss of Use coverage

If it is determined that your home is uninhabitable because of a covered loss, then Travelers may pay for necessary increases in your normal day-to-day expenses.  For example, if a fire makes your home uninhabitable, your policy would cover the cost of a hotel room and the cost of meals during the period of restoration that are above your usual living expenses. 
This coverage may be available only for the period of time reasonably required to make your home habitable, or if a replacement home is purchased, the time reasonably required for you to move. Visit our more detailed Loss of Use coverage page for more information.

Liability coverage

Travelers provides two primary benefits to insureds when there is a covered claim under the Personal Liability coverage. First, Travelers will defend you and provide legal representation, if necessary. Second, if you’re found liable for bodily injury or property damage to a third party, Travelers will indemnify you up to the limits of your insurance. Visit our Liability coverage page for more information.