Choosing the most suitable home insurance is not always easy. There is a wide variety of insurance coverage and while some are straightforward, others can be extremely confounding. One of the insurance policies that we offer at Skeele Agency, Inc. is dwelling fire insurance.
What Is Dwelling Insurance?
Any landlord or homeowner can purchase a dwelling fire insurance policy. It is similar to a homeowner’s insurance, only that it is somewhat restrictive. It covers your home’s structure and best suits a property that doesn’t require comprehensive coverage.
This insurance covers various specific hazards that can potentially damage your home and cause major losses. Your policy, therefore, covers you against certain “named perils” which include the following:
- Smoke damage
- Fire
- Lightning
- Wind damage
- Hail
- Riot
- Explosion
- Vandalism
- Earthquakes, among others.
When such hazards occur and cause damage to the structures on your property, dwelling fire insurance pays for the rebuilding costs. For the insurance to pay up, the damaged parts must be attached to the main structure of your house. This policy does not cover separate structures such as guest houses and sheds; it would be wise to add them separately to your policy to ensure you are adequately covered.
What Is The Difference Between Homeowners Insurance and Dwelling Fire Insurance?
A homeowner’s insurance policy is specially designed for a family home. As long as the owner resides in that particular home, the home is insured under the homeowner’s insurance policy.
On the other hand, a dwelling fire insurance policy is best suited for a rental property, vacant/unoccupied or a seasonal home. If you have one or more houses that you have exclusively rented out to tenants, then you should insure the houses with a landlord policy. The group of insurance companies we work with at Skeele Agency, Inc. provide the following types of dwelling fire insurance coverages:
Dwelling:
This covers the structure of your house. It covers the supplies and materials used in repairing, altering and constructing the home.
Personal Property:
As a landlord, you have this optional coverage to satisfy any losses of personal property that you may have in your dwelling. These include items such as personal appliances and furniture. Note that this policy does not cover all private property.
Fair Rental Value:
If your property is damaged to an extent that tenants can no longer live in it, a fair rental value covers rent losses.
Other Structures:
You can choose to insure other structures on your premises that are detached from the house. These buildings include detached garages and tool sheds, among others.
Additional Living Expenses:
This coverage applies if the owner lives in the dwelling and it becomes uninhabitable due to a covered hazard. It pays for the extra living costs brought about by displacement in case of a mandatory evacuation.
