While a typical homeowner's insurance policy covers everything other than listed exceptions, a dwelling fire policy covers specific perils, which are named. Examples include fire, hail, lightning, falling objects, vandalism, and others. This type of policy is often used by property owners to cover a building that is uninhabited, as it does not cover protection for contents but rather for the structure itself. Common situations in which you might need dwelling fire insurance would be to cover a rental home where you are not concerned with the contents, but only with the structure and appliances, or a home that is vacant due to being temporarily uninhabitable, or a building that is unoccupied after a recent sale or relocation.
Dwelling fire insurance policies can be customized like other insurance policies. Be advised that dwelling fire insurance alone may not provide sufficient coverage for your specific needs and risks. You may need to purchase additional insurance such as flood insurance. Mountcastle can help you understand exactly what is included with your dwelling coverage, and determine what insurance types and addendums would be a good choice for your situation.
Dwelling/Fire Insurance FAQs
Dwelling fire insurance may protect against things such as vandalism, explosions, fire, and some weather-related events such as lightning, snow, hail, and heavy winds. It will only cover damage caused by the specific hazards listed within the policy and nothing else.
No, although the name seems to refer specifically to fire damage, this type of insurance coverage is not limited to fire and smoke damage only. This insurance actually covers perils similar to what a typical homeowner's insurance policy would address. The difference is that while a homeowner's policy generally covers everything with a few exceptions, a dwelling fire policy only covers the perils named in the policy. Also, a homeowner's policy is intended to cover structure and contents, while most Dwelling Fire Insurance policies are used to cover the structure alone. That being said, most insurance companies will offer a modest amount of coverage for contents on this policy type to cover things such as appliances a landlord may furnish to a renter.
On the contrary, this type of policy is tailored to property damage caused by very specific events, with narrower coverage. These policies are generally significantly more affordable for property owners than a standard homeowner's policy.
Good candidates for dwelling fire insurance coverage would be the following:
- A landlord needing to insure his/her building, but not the possessions within it.
- A building owner whose property is under construction or renovation.
- Owners of seasonal or vacation properties that are not occupied full time.
- Owners of lower-value homes such as inexpensive manufactured homes, mobile homes, or older homes.