Apartments: Insured Dwellings?

Dwelling coverage is a critical component of standard homeowners insurance policies, designed to financially protect the structure of your home. It covers the costs of repairing or rebuilding your home and attached structures like garages and porches following damage caused by disasters such as fires, storms, or vandalism. The coverage includes the foundational walls, roof, and built-in elements like cabinetry and flooring. However, it's important to note that dwelling coverage does not include personal possessions, unattached structures like sheds, or the land the home sits on.

What is a dwelling?

A dwelling is the building you live in, including all structures attached to your home, such as a garage or deck, as well as built-in appliances like a furnace or water heater. It is the physical structure that is used primarily as a private residence, such as a house, apartment, condominium, duplex, or townhouse.

Dwelling coverage, also known as dwelling insurance, is the part of your homeowners insurance policy that may help pay for the rebuilding or repair of the physical structure of your home if it's damaged by a covered hazard. This includes the foundational walls, roof, and built-in elements such as cabinetry.

Dwelling insurance covers damage to your home, including the foundation, frame, walls, and roof. It also generally covers things built into your house, like cabinets, permanent air conditioner units, furnaces, and water heaters if they are damaged or destroyed by a covered loss like a fire. Dwelling coverage also typically covers structures attached to the house, such as an attached garage or porch.

What does dwelling insurance cover?

Dwelling insurance, also known as dwelling coverage, is a critical component of a standard homeowners insurance policy. It covers the costs of repairing or rebuilding the physical structure of your home and attached structures in the event of damage caused by a covered peril. This includes the foundational walls, roof, built-in appliances, and cabinetry.

Dwelling insurance typically covers damage caused by:

• Fire and smoke
• Weight of snow, sleet, or ice
• Aircraft or motor vehicles
• Water damage from appliance overflow or HVAC malfunction
• Frozen plumbing
• Explosions
• Windstorms or hail
• Falling objects
• Vandalism

It's important to note that dwelling insurance does not cover damage caused by floods, earthquakes, sewer backups, or a lack of maintenance. These perils may require additional coverage or a separate insurance policy.

The amount of dwelling coverage you need depends on the cost of rebuilding your home, which is influenced by factors such as construction costs, the size of your home, custom features, and its age. Most insurance companies will ask detailed questions about your home to determine the appropriate coverage limit.

What perils are not covered by dwelling insurance?

Dwelling insurance, also known as dwelling coverage or Coverage A, is a critical component of a homeowners insurance policy. It covers the repair or rebuilding of the physical structure of a home in the event of damage caused by covered perils. However, it's important to note that dwelling insurance does not cover all types of perils, and there are certain exclusions that homeowners should be aware of. Here are some of the perils typically not covered by dwelling insurance:

• Floods and Water Damage: Most standard homeowners insurance policies do not include flood damage coverage. If you live in an area prone to flooding, you may need to purchase separate flood insurance to protect your home. Water damage caused by sewer backups, sump pump issues, or unresolved maintenance issues is also typically excluded from dwelling insurance.
• Earthquakes and Earth Movement: Damage caused by earthquakes, landslides, mudslides, and sinkholes is generally not covered by dwelling insurance. If you live in an area prone to such events, you may need to purchase additional coverage or a separate earthquake insurance policy.
• Neglect and Wear and Tear: Dwelling insurance is designed to cover sudden accidents and not routine maintenance issues. Issues like cracked foundations due to settling or roof leaks due to old age are typically not covered.
• Sewer Backup and Sump Pump Damage: These types of water-related issues are usually not covered by standard home insurance policies. However, you can often add coverage for these perils through an endorsement or add-on to your policy.
• Pest Infestations: Damage caused by pests such as termites, rodents, or invasive insects is typically not covered by dwelling insurance. Insurers consider this type of damage to be a maintenance issue that homeowners should address.
• Government Enforcement of Local Building Codes: Dwelling insurance does not typically cover losses associated with enforcing local building codes or bringing your home up to code.
• Nuclear Hazards and War: Damage caused by nuclear reactions, radiation, or war (declared or undeclared) is generally excluded from dwelling insurance coverage.
• Intentional Damage: Dwelling insurance does not cover intentional damage caused by the homeowner or a family member.

It's important to carefully review your homeowners insurance policy to understand the specific perils that are covered and excluded. Additionally, consider consulting with an insurance professional to ensure you have adequate coverage for your needs.

What is the difference between dwelling coverage and building property protection in a condo insurance policy?

In a condo insurance policy, dwelling coverage is often referred to as building property protection. The difference between the two is that dwelling coverage is a part of a homeowners insurance policy, while building property protection is a part of a condo insurance policy.

Dwelling coverage is one of the most important parts of a homeowners insurance policy. It covers the structure of your house, including the roof, foundation, floors, doors, windows, and walls. It also extends to any attached structures, such as garages, porches, decks, and built-in appliances and fixtures. However, it does not include belongings, unattached structures (such as a shed), or the land the home sits on.

Building property protection in a condo insurance policy covers the interior of the condo unit, including any updates made to the interior cabinets, flooring, countertops, etc. It also covers the walls of the condo unit. The condo association's insurance policy typically covers other parts of the building, such as the roof, elevator, basement, courtyards, or walkways.

The amount of dwelling coverage or building property protection needed depends on the condo association's master policy. If the master policy is "all-in" or "all-inclusive", covering both external and internal features of the condo, then less building property protection is needed in the individual condo insurance policy. If the master policy is "bare walls-in", covering only the exterior of the building, then more building property protection is needed in the individual condo insurance policy to cover the interior of the unit.

It is important to review the condo association's master policy to determine the specific coverage needed for an individual condo insurance policy.

What is the difference between dwelling coverage and other structures coverage?

Dwelling coverage is the part of a home insurance policy that covers the costs of repairing or rebuilding the structure of your home in the event of damage caused by a covered peril. This includes the roof, foundation, floors, doors, windows, and walls, as well as attached structures like garages, porches, and decks. It also covers built-in appliances and fixtures. However, it does not include personal belongings, unattached structures like sheds, or the land the home sits on.

Other structures coverage, on the other hand, pertains to structures on your property that are separate from your home, such as fences, swimming pools, or guest houses. It covers damage to these structures caused by disasters such as fire, theft, windstorms, and hail damage. The coverage limit for other structures is typically about 10% of the dwelling coverage limit.

To illustrate the difference, if your home is damaged by a covered peril, dwelling coverage will help pay for repairing or rebuilding your home's physical structure. On the other hand, if you have a detached garage or garden shed that is damaged in a windstorm, other structures coverage will help cover the repair costs.

Frequently asked questions