What Is Dwelling Coverage vs Home Insurance?
Dwelling coverage is an important part of your homeowners or condo insurance policy. It covers your home's structure, installed fixtures, and permanently attached appliances. It helps you protect your residence structure and certain items attached to it. You may need to buy additional insurance to cover a fence, a detached garage, or other structure on your property.
Dwelling coverage on a condo policy is for the inside of the condo, the part you own. This includes any updates you may have made to the interior cabinets, flooring, countertops, etc.
Why do you need dwelling coverage?
Dwelling coverage helps pay for rebuilding or repairing of the insured structure if it's damage by a covered peril. Along with your house, connected structures such as attached garages are often protected by dwelling coverage insurance. It differs from home insurance, which covers the surrounding land and detached buildings on the property around your home. Covered perils include damages from:
- Lighting strikes
- Wind storms
- Falling objects
- Damage from an explosion
- Damage from a motor vehicle
- Damage from a blizzard or snow, sleet, or ice
Your homeowners or condo policy will tell you what events it covers. Typically, detached pieces such as a separate garage, toolshed, pool, and fences will not be covered.
What's not covered by dwelling insurance?
Dwelling insurance normally doesn't cover damage from:
- Improper maintenance of the structure
- Water back-ups
You may be able to purchase additional coverage for floods, earthquakes, and water back-ups. However, you should review your policy to see what is covered. Talk to one of our experienced agents today in order to discover the options available to you.
Condo dwelling coverage is not the same as home dwelling coverage. In condos, the building's property protection will pay for some damage, and the condo association may have an insurance policy that will cover other parts of building damage.
How Do You Calculate Dwelling Coverage?
If you need an estimate of the dwelling insurance costs in your area, contact us today! Generally, dwelling insurance limits should allow you to rebuild your home or condo back to how it was before it was damaged by a covered peril. Your estimate should be based on today's prices. One way to get an estimate is to multiply the square footage of your home by the average cost per square foot to build, but other factors can influence the price of coverage. You may also need to add an additional amount for cabinets, appliances, or special upgrades you have in your home. Do not include upgrades or additions you would like to make to the structure in this amount. You would not use the purchase price or the current market price to determine the limits.
You will also need to select a deductible for this coverage. This is the amount you will be responsible for paying in the event of a covered loss.
We're here to help. If you have any questions or just want to chat, call our licensed agents at (800) 841-3005. We'll help you get the coverage you need and answer any question you may have. You can also get a free online home insurance quote or condo insurance quote today.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
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