Understanding the Significance of Dwelling Insurance Coverage

Dwelling insurance is a part of your home insurance policy that helps repair the physical structure of your home if it suffers damage. This makes it easier for you to replace the walls and flooring of your home in the event of an emergency.

What Does Dwelling Insurance Cover?

Your dwelling is often defined as the physical structure that you live in. However, it also includes attached structures such as a cabin or garage. Dwelling insurance covers any damage to those structures as well.

However, if you have a structure on your property that isn’t attached to your home and cannot be regarded as part of your dwelling, it will not be covered by dwelling insurance coverage. Instead, you can protect such structures with an “other structures coverage.”

Covered Perils 

Research shows that common perils covered by most home insurance policies include accidental fires, lightning strikes, explosions, theft, and falling objects. Remember that the coverage varies from state to state. That’s why it is important to read through your home insurance policy to see what is fully covered.

Common Exclusions 

Generally, home insurance policies do not cover flood, earthquake, or sewage damage to your structure. Also, any damage that results due to a lack of maintenance is also not covered. You can purchase extra coverage or look into a separate insurance policy to cover these issues.

Water backup coverage protects you if issues with your sewer damage your house property. Flood insurance protects your home against the threat of severe floods in your area.

It’s also important to remember that dwelling coverage in a home insurance policy is different from the building protection that is available under a condo insurance policy. If you are staying in a condo, building property protection helps pay for any damage to the walls and interior of your condo. Your condo association’s insurance policy may take care of any damage to the roof, basement, or elevator.

Coverage Limits 

The amount of dwelling coverage that you have is usually subject to limits and deductibles.

Your dwelling coverage limit is the maximum amount that your homeowners insurance policy will pay to cover any damages. The deductible is the amount you have to pay before your coverage kicks in. Once you purchase home insurance, you have the option to choose your coverage limit. You want to ensure that you have enough coverage to rebuild your home. The majority of home insurance policies offer replacement cost coverage. Your dwelling coverage limit may affect the limits of other coverages in your home insurance policy. Make sure that your coverage limits and deductibles suit your needs.

Dwelling coverage can prevent you from possibly losing your home if an emergency happens. If you have any questions related to home insurance, our experts at Family Financial Insurance Group are here to assist you. Contact us today to get started on your tailor-made home insurance policy.

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