Insurance policies include a lot of legal verbiage and terms such as dwelling coverage often confuses people due to its ordinary usage. Simply put, dwelling coverage is one aspect of an overall homeowner’s insurance policy. However, dwelling coverage can be purchased as a stand-alone policy.
A policy for dwelling insurance covers the physical structure of the home, permanently attached appliances and any installed fixtures. It doesn’t cover land or the contents of the home. Dwelling insurance will cover fire, smoke, hail, lightning and windstorm damage. It will also cover theft and vandalism, explosions, falling objects and damage if a vehicle plows into a home. Depending on the policy, it may also cover damages resulting from an aircraft.
Dwelling insurance will pay to replace the home if its damaged, along with attached structures such as a garage. Decks and porches may also be considered part of the home. The policies are typically issued for a second home where people aren’t in residence all the time or if the owners are placing the house on the market to sell.
This type of policy can also be purchased if a home is an investment property or rental home. Renters will need their own renter’s insurance policy to cover the cost of their personal possessions if they’re damaged.
Both types of policies provide owners with protection in the event that the structure itself sustains damage. Dwelling coverage is subject to limitations, just like a traditional homeowner’s policy. Individuals will have a deductible that they must pay out of pocket toward repairs. Coverage limits vary by insurance company and it’s important to know what the limitations and deductible will be if damage occurs.
It’s possible to increase the coverage limits of a dwelling policy but doing so will increase the costs. For structures that are furnished, a comprehensive homeowner’s policy is more desirable.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487