Dwelling is a physical structure, area, and part of the residence which includes building Apartments, houses, and attached structures to the house (generally garage, fence, and deck). So dwelling Insurance Policy is a part of the Homeowners Insurance policy which will pay for the physical structure of the home while damaged by the covered hazards. This Policy may Include the dwelling coverage which will help to repair and rebuild the building. Or we can say that dwelling Insurance protects the home, where the person (Insured) lives, and also protects its attached structure like a garage or a porch with some added coverages.
Dwelling Insurance Covers:
There are certain hazards or we can say perils that are covered by most homeowner insurance policies. On the other hand, coverage can also vary from state to state and this may also depend on geographical factors. Homeowner policy covers the damage of listed events followed as:
|Lightning Strikes||Damage caused by the weight of snow or ice|
|Wind Storms||Falling object|
|Hail||Damage from an aircraft|
|Explosion||Damage from a motor vehicle|
Dwelling Insurance covers the damage to the home which includes the foundation, the frame, the wall, and the roof of the house. This will also cover cabinets, appliances like furnaces and water heaters, or other structures that may touch the house.
Detached garages, sheds, and other structures may also be considered as a part of dwelling under a traditional homeowner policy. But these are not covered in renters policy and condominium policy,
Exclusions under Dwelling Insurance:
These are some exclusions that are not covered under the dwelling insurance policy or homeowner policy. Generally, a standard homeowner policy generally does not cover flood, earthquake, sewer backup, and damage with lack of maintenance. Insured should have to take additional coverages to cover up these types of additional perils. For example, Water backup coverage usually covers the sewer backups, and flood insurance coverage will protect the home from flooding.
How much Dwelling coverage is needful?
If the home is totally destroyed with covered perils, the coverage amount should be sufficient to pay for rebuilding the house and its attached structure. So the replacement cost of the home will depend on a number of factors:
- Cost of construction and labor in the specific area.
- Home’s Square footage
- Any custom-built feature
- The style of house
To get this estimate of how much dwelling coverage is required to the homeowner policy. So Insured or clients can get a professional appraisal. An insurance company or provider may send their own appraiser to evaluate the home. But if the homeowner policy includes an insurance Appraisal clause so Insured can hire an independent appraiser.