If you are exploring ways to protect the financial value of your home, you might consider a typical home insurance policy. The benefit of doing so is that you will be protected in the event of a variety of different hazards, from physical to liability issues.
The problem to be aware of is that this type of comprehensive coverage can come at a high cost. Those on a tighter budget may wish to consider dwelling fire insurance. This type of policy provides narrower coverage but cuts the price down significantly. It also includes coverage for particular hazards and will be a more affordable choice for the majority of property owners.
What is Dwelling Fire Insurance?
A common mistake people make when exploring dwelling fire insurance is assuming that it only covers smoke and fire hazards. On the contrary, dwelling fire insurance provides homeowners with a range of flexible coverage choices that will give the most significant benefit for them.
When explored, you will discover that the perils which are covered can be remarkably similar to a standard homeowner insurance policy. Some of the hazards that can be covered include:
Key Differences Between Dwelling Fire and Homeowners’ Insurance Policies
The critical difference between dwelling fire insurance and a standard homeowner policy is simple; a standard homeowners’ insurance policy will cover everything except for the listed exclusions. In contrast, a dwelling fire insurance policy will only cover the hazards that are listed.
Am I Covered?
A dwelling is considered your home plus any attached structures. This may include an attached garage, tool shed, deck, front porch, balcony, or bathhouse. If an attached structure is damaged by a hazardous event listed in your policy, then your dwelling fire insurance should cover all repair costs.
These policies are typically favored by people who are insuring second homes, rental properties, and older homes. Dwelling fire insurance is particularly useful for rental properties because it will allow you to insure what you want to protect. For example, you might want to cover the property itself without providing coverage for content that you do not own. A dwelling fire insurance policy will allow you to do this, giving you complete control.
In the case of older homes, full insurance coverage may not be an option. Similarly, if you have multiple homes, adding full insurance coverage to them can double the expense.
However, dwelling fire insurance can be a suitable option for anyone eager to ensure that they are covered for potential disasters without needing to worry about high insurance costs.
Ultimately, dwelling fire insurance is proof that protecting your home can be more affordable than you think. It provides a form of coverage for individuals who find typical insurance policies completely inaccessible for them.
To learn more, please contact your local insurance agent today. We will be happy to assist you with protecting your home and the value of your property contents.