Dwelling coverage is one of the most important parts of a homeowners insurance policy. If your house burns to the ground or a fallen tree crushes your roof, dwelling coverage would pay to help you repair or rebuild.<\/p>
Understanding your home insurance deductible can help you decide how best to protect what may be the most expensive purchase you ever make. Unfortunately, it\u2019s not always easy to understand your policy\u2019s fine print.<\/p>
Dwelling insurance pays either to repair or rebuild your home when a covered disaster \u2014 called a peril \u2014 strikes. A policy will specify what damage is covered and by what types of disasters, but you can often supplement your coverage with another insurance product to address the gaps. This includes adding a flood insurance policy to a home located in a flood zone.<\/p>
Dwelling insurance, also known as dwelling coverage, is the foundational coverage type of a home insurance policy. For insurance purposes, your dwelling includes your house and the structures attached to your home. This includes attached garages, decks, and porches.<\/p>
Structures that aren\u2019t attached to your house, like a fence or shed, are covered under the \u201cother structures coverage\u201d portion of a\u00a0homeowners insurance\u00a0policy.<\/p>
When buying a homeowners policy, you can choose the coverage limit and deductible for the dwelling insurance. Typical coverage limits range from $100,000 to $500,000, while deductibles may be anywhere from $500 to $2,000, depending on the policy and insurer. Insurers reimburse claims based on a fixed dollar amount, rather than a percentage.<\/p>
Dwelling coverage is the part of a homeowners policy that pays to repair damage to the structure of your home, or to rebuild it if it\u2019s destroyed. It will cover you up to the limit of your policy.<\/p>
Your home\u2019s structure includes the roof, foundation, floors, doors, windows and walls. Dwelling coverage also generally extends to any attached structures, such as garages, porches, decks, and built-in appliances and fixtures. However, it doesn\u2019t include your belongings, unattached structures (such as a shed) or the land your home sits on.<\/p>
In a condo insurance policy, dwelling coverage works differently. Most condo residents own only their own unit, not the building itself, so your policy\u2019s dwelling insurance doesn\u2019t need to cover things like the roof or outer walls. Your condo association likely has a master insurance policy that covers the structure of the building.<\/p>
However, you may need dwelling coverage for built-in cabinets, appliances and floors within your unit. Exactly what you need to cover depends on what your association\u2019s policy includes.<\/p>
For example, many condo associations cover your unit\u2019s walls, ceiling and floor but not anything attached to them. So if you want coverage for your carpet, built-in cabinets and appliances, you\u2019ll need dwelling insurance.<\/p>
Here are more coverage types found in a standard home insurance policy.<\/p>
This pays to repair or replace structures that aren\u2019t attached to your property, such as a fence, detached garage and shed.<\/p>
This pays for accidental injuries and property damage you cause to others. For example, if your dog bites a guest, liability insurance can cover their medical bills. Court judgments, settlements and the cost of a legal defense are also covered by liability insurance.<\/p>
This pays for minor injuries to others if they\u2019re hurt on your property. This coverage is usually sold in small amounts, often between $1,000 and $5,000. Medical payments to others can be a good way to cover small medical expenses without legal complications, like whether or not you are actually legally liable for the injury.<\/p>
More expensive medical claims would be covered under liability insurance.<\/p>
The most common home insurance policy is an HO-3. It covers your house (dwelling structure) from all problems unless they are listed as exclusions in the policy. This is known as an \u201copen peril\u201d policy. Perils is just insurance jargon for \u201cproblems.\u201d<\/p>
Your belongings, on the other hand, are covered for 16 specific problems in an HO-3 policy. These include fire, theft, wind, explosions and other typical issues. If you want home insurance that covers all problems for your dwelling and personal property (except exclusions that are listed), ask your agent about an HO-5 policy.<\/p>
Homeowners can expect dwelling insurance to cover their main structures from a variety of approved hazards and perils, including the following:<\/p>
Dwelling insurance is just one type of coverage provided in your homeowners’ insurance policy. Although it protects the physical structure of your home from many perils, there are some things that are not included in dwelling coverage. Even the best homeowners or condo policy won\u2019t cover certain disasters, though you may be able to buy extra coverage. <\/p>
Here are some common dwelling coverage exclusions in a standard HO-3 home insurance policy:<\/p>
Homeowners and condo policies generally won\u2019t cover damage due to \u201cearth movement,\u201d which includes earthquakes, landslides, mudslides and sinkholes. Your insurer may offer additional coverage for these disasters.<\/p>
If a hurricane pounds your area with rain or a nearby river overruns its banks, your dwelling coverage usually won\u2019t pay for any resulting water damage to your home. If your home is at risk, you can buy flood insurance through the federal government or a private company.<\/p>
Termites, rodents and other invasive pests can do plenty of damage to the structure of your home, but your dwelling insurance probably won\u2019t cover it. Insurers consider this kind of damage a maintenance issue that homeowners should expect to pay for themselves.<\/p>
Insurance is designed to help with sudden accidents, not routine maintenance issues. Your dwelling coverage is unlikely to help with things such as a foundation that cracks due to settling or a roof that starts leaking because it\u2019s 20 years old.<\/p>
If you divide your time between homes, or you\u2019ve got a house sitting empty while you\u2019re waiting to sell it, you might not have as much coverage as you think. Many home insurance policies won\u2019t cover certain types of claims such as vandalism if the house is vacant longer than 30 or 60 days.<\/p>
There are several factors that insurance companies look at to determine dwelling insurance rates, including:<\/p>