Ovation Home Insurance Exchange released information on May 4 about Coverage A, also known as dwelling coverage, which is a key part of homeowners insurance policies.
Coverage A protects the main structure of a home and anything attached to it if it is damaged by events such as fire, wind, or certain types of water damage. This includes the home’s walls, roof, foundation, attached structures like garages or decks, built-in systems such as plumbing and electrical wiring, and permanently installed fixtures. The company said that Coverage A does not cover personal belongings (which fall under Coverage C), detached structures like sheds or fences (Coverage B), liability claims (Coverage E), or temporary housing costs if the home becomes uninhabitable (Coverage D).
The amount set for Coverage A is based on the estimated cost to rebuild the home using similar materials and labor at current prices. Ovation Home Insurance Exchange stated that its policies align with these rebuilding realities by setting limits designed around 100% replacement cost. The company said this approach differs from some insurers who may insure homes for less than their full rebuild value—sometimes as low as 80%—which can affect claim payments after significant losses.
Ovation also addressed how roofs are handled in their policies. According to the company, roofs are typically assigned a stated value on policy documents; however, in cases of total loss or hurricane-related damage, roof claims are settled based on replacement cost rather than actual cash value.
The release emphasized that “Coverage A isn’t just one part of your policy; it’s the foundation of it.” The limit set for this coverage determines how much is available to rebuild after structural damage and whether coverage keeps pace with rising construction costs. Ovation encouraged homeowners to review their current limits with an agent to ensure they reflect what would be needed to fully rebuild today.
