What Exactly Is Dwelling Insurance?

What Does The Term "Dwelling" Mean?

Your residence is the structure in which you live. In terms of your home's insurance policy, the definition of a residence includes all buildings linked to your home (such as a garage, fence, or deck), as well as built-in appliances (such as a furnace or water heater).

Under a standard homeowner’s insurance, detached garages, sheds, and other similar buildings are also considered part of your dwelling. However, if you have a renters' policy (called an HO-4 policy) or a condominium policy (called an HO-6 policy), such structures will not be protected because you are likely not the sole owner of that property.

Parts of your home are shared with other condo owners if you own a condo. To identify which portions of the dwelling are your duty to insure and which are covered by the master policy, study your condominium association's master insurance policy. When getting homes insurance, be sure to obtain a comprehensive list of what is your obligation to insure and submit it.

What Is Dwelling Insurance Covered For?

Dwelling coverage varies between insurance policies and areas, so check your own policy's declaration page to see what you're covered for. Under housing coverage, most homeowners’ insurance plans cover the following perils:

•Theft

•Vandalism

•Smoke and fire damage

•Explosions (Confirm that your policy does not cover terrorism.)

•lightning strikes

•Damage caused by hail

•Wind-related harm

•The weight of snow, sleet, or ice causes damage.

•Pipes burst

•Objects that fall, including aeroplanes

•Collisions between vehicles

Structures such as sheds and unattached garages are likely covered under your home's insurance policy if you own a standard home. However, tenants and condo owners are unlikely to be insured because these structures aren't their own property.

What Does Dwelling Insurance Not Cover?

Despite offering rather extensive coverage, most home insurance policies exclude flooding, earthquakes, sinkholes, and sewage backups. They also do not cover damage caused by your failure to do basic maintenance, such as ignoring a dry-rot problem. You may get coverage for some of these dangers by adding a rider to your home's insurance policy.

Finally, your insurance may exclude foundation cracks caused by settling but cover other foundation damage, such as damage caused by an explosion.

Your homes insurance coverage will include deductibles and restrictions, in addition to any exclusions. For example, if your chimney flue was closed and caused $1,500 in smoke damage to your home, but your dwelling coverage is subject to a $1,000 deductible, your insurance carrier will only pay $500.

How Much Dwelling Insurance Do I Require?

If your house and its related structures are completely destroyed by a covered risk, your coverage level should be adequate to pay for reconstruction. Don't assume that this figure is the same as the purchase price or the home's current market worth. The cost of replacing your house will be determined by a variety of factors, including:

•Construction and labour costs in your area

•The square footage of your home

•Any custom-designed features

•The house's design (such as a ranch or colonial home)

Receive a professional assessment of your property to get an accurate estimate of how much dwelling coverage you need under your homeowner’s insurance policy.

Your insurance company may send an appraiser to examine your house, but if your homeowner’s policy includes an Insurance Appraisal Clause (which most do), you may also engage an independent appraiser. This may be worthwhile if you believe the insurance company's estimate is too expensive or excessively low.

What Exactly Is HO-6 Dwelling Coverage?

An HO-6 coverage is comparable to a standard homeowners insurance policy; however, it is designed exclusively for condominiums. It covers the same goods as other homeowner insurance, such as furniture, televisions, and clothing. The dwelling part, on the other hand, varies from standard insurance since most condo owners do not own all of the auxiliary structures linked to their building.

The master insurance policy of your condo association will provide one of two types of coverage, which will determine the extra coverage you may need to acquire.