Dwelling Fire Insurance

     
The Dwelling Fire Policy provides property coverage for your dwelling and its contents. Many of the coverages found in the dwelling policy are found in the homeowners policy, but there are some differences. The dwelling policy tends to provide narrower coverage than the homeowners policy. The insured under the dwelling policy is the named insured and the spouse, if a resident of the same household. The DP-03 dwelling policy form is the broadest and provides coverage for the dwelling, other structures, personal property, fair rental value and additional living expenses. In addition to these coverages, the policy provides additional coverages for reasonable repairs, property removed, fire department service charges, debris removal and coverage for trees, shrubs, and other plants. The dwelling forms do not provide coverage for liability, theft, or medical payments. However, such coverages are available through a personal liability supplement endorsement and a theft endorsement.

Dwelling

This amount of insurance applies to the dwelling described in the policy and any attached structures. Building equipment and outdoor equipment used for servicing of the building and located on the described premises is also covered.

Other Structures

This coverage applies to detached structures such as a garage or storage shed. The limit of insurance coverage is set at 10% of the dwelling limit for loss to other structures. 

Personal Property

This coverages applies to personal property that is usual to the occupancy of a dwelling. The coverage applies to personal property owned or used by the insured or resident family members, while the property is on the described location. The limit of insurance for this coverage is chosen by the insured. 

Fair Rental Value

Under the broad and special dwellings forms, coverage is provided for fair rental coverage for that part of the residence premises that is rented or held for rental to others. If a loss occurs under coverage A that makes that part of the premises unsuitable for living, this coverage would pay the lost rental value. The limit of insurance is 10% of the dwelling limit. Fair rental value is the amount of rent that could reasonably be charged for the premise. 

Additional Living Expense

Under the broad and special dwellings forms, coverage is provided for additional living expenses in the event of a loss under Coverage A. If the insured was to temporarily lose use of the dwelling, this coverage would apply and payment could be made for expenses incurred to live elsewhere following a loss that makes the dwelling unsuitable for living.

Deductible

The dwelling policy has a standard deductible of $250.

Endorsements

Personal Liability Supplement

Liability coverage is not automatically included in dwelling policies, however, coverage is available by adding a personal liability supplement to the policy. Liability coverage can be added for a residence premise as long as the insured resides in at least one of the family units; the residence premise can be a three or four family dwelling. The limit of liability is $100,000 per occurrence. Coverage is provided for bodily injury and property damage. Medical payments coverage is also included in the liability supplement. The limit for medical payments is $1,000 per person, the coverage will pay the necessary medical expenses for bodily injury of others when caused by action of the insured.

Residential Theft Coverage Endorsement

Theft coverage is not automatically included in dwelling policies, however, coverage may be added with a broad theft coverage endorsement or a limited coverage endorsement. The limited theft coverage endorsement is available for dwellings that are not owner-occupied. The broad theft endorsement is only available to owner-occupied dwellings, and can apply to on and off premise theft. Both endorsements provide coverage for theft, attempted theft, and vandalism or malicious mischief as a result of theft. Special limits apply to certain personal property, and certain property is excluded on both endorsements.

Dwelling Fire Insurance, the earliest form of homeowners coverage, is now primarily used to cover homes that are rented to others.  Homeowners Insurance is required whenever a home has a mortgage. This protects the interest of the bank or mortgage company. Since a home is usually the largest purchase one makes, most people carry homeowners insurance even after they pay off their mortgage. 
Homeowners Insurance also provides protection for people who rent. Though renters don't have a need to protect the structure, they do have personal property such as furniture, clothing, electronics, computers, and other personal belongings. A form of Homeowners Insurance called Renters Insurance protects the personal property of renters. 
Personal Liability coverage, a very important part of Homeowners and Renters Insurance, protects you in the event someone sues you for unintentional acts in your personal life. 
The insurance experts at Regan Agency can help guide you in making the proper decisions when choosing Homeowners Insurance. We offer:

The Finest Coverage