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What’s in a Name? Is Dwelling Insurance the same as Homeowners Insurance?

Most homeowners’ insurance package contains several pages of complicated jargon that can often be confusing. This leaves many residents wondering what is – and what is not – covered by their policy. Dwelling coverage, sometimes called dwelling insurance, should be part of any basic home insurance policy. It is separate from your liability coverage (in case a third party is injured in your home) and your personal contents coverage (which provides protection for the belongings you keep inside your home).

Dwelling coverage helps to pay for the rebuilding or the repair of the physical structure of your home if it’s damaged by a covered event. While coverage can vary significantly between different insurance providers and various geographical locations, most standard homeowners insurance’s dwelling coverage should apply to damage caused by fire/smoke, lightning strikes, windstorms such as tornadoes, hail, explosions, vandalism, theft, winter storms, falling objects, aircraft damage and motor vehicle damage. If your garage is attached to your home, it should also be included in your dwelling coverage.

Events typically not covered by dwelling insurance for most standard homeowners’ policies include floods, earthquakes, sewer backups or damage that occurs from a lack of maintenance. So while your dwelling coverage may help pay for repairs to damage caused by hurricane winds, it will not cover any damage caused by flooding the hurricane prompted. You will need to speak with an insurance agent about securing additional types of coverage for these events, such as flood or earthquake insurance.

The amount of dwelling coverage you carry should be sufficient to help you completely rebuild your home, should it be totally destroyed by one of those covered events. Also be mindful of the deductible you choose. Remember, your insurance company will not start to compensate you for your losses until you have met the deductible. Be sure the amount you choose is one you can comfortably afford to pay should you need to file a claim.

It’s always a good idea to speak with a knowledgeable agent, such as those at Starr Mathews, who can identify any gaps in your insurance. We are able to find you a number of quotes with a variety of coverage options from multiple providers, ensuring the policy you buy offers the best coverage at the most affordable rates. Contact us to find out if your dwelling coverage is sufficient to help you through a devastating event.

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