What Is Home Insurance Dwelling Coverage?
Key Takeaways
Dwelling Coverage Pays to Rebuild or Repair Your Home's Structure
This part of your homeowners or condo policy covers damage to your house and attached structures like garages from covered perils including fire, smoke, lightning, windstorms, hail, vandalism, theft, and explosions. It protects the physical structure, installed fixtures, and permanently attached appliances. Detached structures like separate garages, toolsheds, pools, and fences typically require separate coverage.
Floods, Earthquakes, and Poor Maintenance Are Not Covered
Standard dwelling coverage excludes damage from floods, earthquakes, water back-ups, and improper structural maintenance. You can purchase additional policies or endorsements for floods and earthquakes, but maintenance-related damage is always your responsibility. Condo dwelling coverage works differently since the building's property insurance and condo association policy may cover portions of the structure you do not own.
Insure for Replacement Cost, Not Market Value or Purchase Price
Your dwelling coverage limit should reflect what it would cost to fully rebuild your home at current construction prices, not what you paid for it or what it would sell for today. Factors like local labor costs, material prices, home size, architectural style, and custom features all affect rebuilding estimates. Under-insuring leaves you exposed after a major loss, while over-insuring means paying premiums for coverage you will never collect on.
Dwelling coverage is an important component of your homeowners or condo insurance policy. It covers your home's structure, installed fixtures, and permanently attached appliances. It helps you protect your residential structure and certain items attached to it. You may need to buy additional insurance to cover a fence, a detached garage, or other structures on your property.
Dwelling coverage on a condo policy is for the inside of the condo, the part you own. This includes any updates you may have made to the interior cabinets, flooring, countertops, etc.
We can help you find a homeowners policy or condo policy to meet your needs.
What does dwelling coverage cover?
Dwelling coverage is the portion of your homeowners insurance policy that helps pay for the rebuilding or repairing of the insured structure if it's damaged by a covered peril. Along with your house, connected structures such as attached garages are often protected by dwelling coverage insurance. It differs from home insurance, which covers the surrounding land and detached buildings on the property around your home. Covered perils include damages from:
- Fire
- Smoke
- Lighting strikes
- Windstorm
- Hail
- Falling objects
- Vandalism
- Theft
- Damage from an explosion
- Damage from a motor vehicle
- Damage from a blizzard or snow, sleet, or ice
Your homeowners or condo policy will tell you what events are covered. Typically, detached pieces such as a separate garage, toolshed, pool, and fences will not be covered.
What is not covered by dwelling insurance?
Dwelling insurance normally doesn't cover damage from:
- Improper maintenance of the structure
- Floods
- Earthquakes
- Water back-ups
You may be able to purchase additional coverage for floods, earthquakes, and water back-ups. However, you should review your home insurance policy to see what is covered. Talk to one of our experienced agents today in order to discover the options and see how much dwelling coverage you need.
Condo dwelling coverage is not the same as home dwelling coverage. In condos, the building's property protection will pay for some damage, and the condo association may have an insurance policy that will cover other parts of building damage.
How much dwelling coverage do I need?
The amount of dwelling coverage you’ll require is dependent on your specific needs and preferences. In general though, it’s recommended to carry enough to fully rebuild your home at its current replacement cost value (RCV), which is the cost to reconstruct without factoring in land value or depreciation. Key factors affecting rebuilding costs include local construction costs, labor expenses, material prices, home size, architectural style, and special features such as custom cabinetry or high-end finishes.
Here, accurate estimation is crucial, as under-insuring can leave you financially exposed, while over-insuring leads to unnecessary premiums. Consulting a professional, such as a licensed insurance agent or home appraiser, ensures the coverage amount reflects true rebuilding costs, safeguarding homeowners against unexpected losses.
Understanding dwelling coverage limits
Looking for a free estimate on dwelling insurance in your area? Contact us today! Generally, dwelling insurance limits should allow you to rebuild your home or condo back to how it was before it was damaged by a covered peril. Your estimate should be based on today's prices. One way to get an estimate is to multiply the square footage of your home by the average cost per square foot to build, but other factors can influence the price of coverage. You may also need to add an additional amount for cabinets, appliances, or special upgrades you have in your home. Do not include upgrades or additions you would like to make to the structure in this amount. You would not use the purchase price or the current market price to determine the limits.
You will also need to select a deductible for this coverage. This is the amount you will be responsible for paying in the event of a covered loss.
GEICO Insurance Agency is Here to Help with Your Dwelling Coverage
We're here to help. If you have any questions about dwelling coverage or just want to chat, call our licensed agents at (800) 841-3005. We'll help you get the coverage you need and answer any question you may have. You can also get a free online home insurance quote or condo insurance quote today.
Please note that homeowners and condo coverages are written through non-affiliated insurance companies and are secured through the GEICO Insurance Agency, Inc.
Ready to Protect Your Home?
See how homeowners insurance could help protect what matters most.
Condo Living, Covered
Condo insurance could help protect your unit and belongings.