Your Homeowners insurance policy is likely made up of different types of coverages that have their own protections and exclusions. In fact, many Homeowners policies include coverages for personal property, loss of use, and dwellings. In today’s blog, our insurance experts discuss the basics of dwelling coverage.
Dwelling coverage, also known as dwelling insurance, is the portion of your Homeowners insurance that covers the physical structure of your house in the event that it’s damaged by a covered peril. In other words, it’s the part of your Homeowners insurance policy that helps you pay to repair or rebuild your home in the event of damage by a covered peril.
Because there are different types of dwelling coverage, you’ll want to review your personal policy to discover what’s explicitly covered. Here are some of the general types of coverage you might expect to see.
In terms of your home, dwelling insurance typically covers the foundation (if damaged by a covered peril), frame, roof, attached garages and decks, screened-in patios and porches, chimneys, built-in appliances like your furnace and water heater, and permanently installed fixtures such as cabinets, sinks, floors, and countertops.
Generally speaking, dwelling insurance does not always cover structures that are detached from your home, including detached sheds and garages, fences, trampolines, treehouses, etc. That said, you may be able to purchase an amendment to cover these structures.
In terms of covered perils, dwelling insurance tends to cover fire and smoke damage, theft and vandalism, aircraft and automobile damage, wind damage, and damage caused by the weight of snow or ice.
In general, dwelling coverage doesn’t cover earthquakes, flooding, mudslides, pests, and slowly accumulated water damage. That said, you may be able to purchase additional insurance to cover your home from perils that are generally excluded from your dwelling coverage.
A home’s dwelling coverage is determined by the amount of money it would cost to do a full rebuild at the most current construction and labor prices. Because many people are unintentionally underinsured, if you’re switching carriers or moving into a new home, the best way to determine your dwelling coverage limit is to is to explore your options with your agent. It is your responsibility to set the value of the total cost to reconstruct your dwelling, but a qualified, licensed agent has tools available that can help calculate those costs and come up with the best estimate.
Contact an independent agent to learn more about Grange Insurance Association’s Homeowners insurance options. In the meantime, check out our insurance blog, where we cover Home insurance topics including everything from loss of use coverage to scheduled and unscheduled personal property coverage.
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