Dwelling Insurance

Updated: 09 June 2023

What Does Dwelling Insurance Mean?

Dwelling insurance is a policy that provides coverage to the physical structure of a home and any structure attached to it, including sheds, garages, and patios. Under this coverage, the insurance company shall pay for the expenses of rebuilding or repairing the damaged structure if a covered peril causes the damage.

Insuranceopedia Explains Dwelling Insurance

Dwelling insurance offers various forms of coverage categorized into the following:

  • Coverage A: for the building used exclusively for residential purposes; containing not more than four apartments; includes townhouse or row house structure; applies where dwelling is still in the course of construction.
  • Coverage B: similar to Coverage A; dwelling must not be used for business purposes except when permitted as incidental occupancy or when rented as private garage.
  • Coverage C: rental apartments, including equipment, furnishings, and appliances in rooms or halls; condominium units used by the insured or rented to others.
  • Coverage D: protection against loss of fair rental value for those that fall under Coverage A, B, and C.
  • Coverage E: additional living expenses applicable only to dwelling occupied exclusively by the owner.

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