What Is Dwelling Insurance? How is it Different from Home Insurance?
"Home sweet home" is often used to describe the feeling of being at home. However, when it comes to insurance, specialty dwelling insurance and homeowners insurance are essentially the same thing. Homeowners insurance is a comprehensive insurance policy that covers your home, and dwelling insurance is a part of that policy that specifically covers the physical structure of the building, rather than the land or surrounding structures.
Sometimes, a separate specialty dwelling insurance policy may be used for unoccupied properties, such as rental properties that are not in use, vacation homes, or incomplete dwellings.
If you're unsure about whether you need more dwelling coverage, you can call G&G's agents for guidance.
What is Covered by Specialty Dwelling Insurance?
Dwelling insurance covers your “dwelling”—that is, your actual home and any attached structures like an attached garage or a patio.
It usually also covers contents and appliances that are built into the dwelling. This could include water heaters, light fixtures, cupboards, and counters.
This type of insurance covers these parts of your house in case of:
- Theft
- Vandalism
- Fire
- Smoke
- Heavy Wind
- Hail
- Explosions (policies may not cover terrorism)
- Falling Objects
- Lightning
- Snow, Sleet, or Ice damage
- Burst Pipes
- Motor vehicle collisions
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What Does Dwelling Insurance Not Cover in Arkansas?
Dwelling insurance in Arkansas only protects parts of your home that are attached to, or built-in to, your main building. This type of insurance excludes things such as:
- Fences
- Unattached garages/sheds
- Pools
- Unattached guest houses
- Barns
- Land
- Etc.
Perils that are not covered by dwelling insurance are similar to the perils not covered in homeowner’s policies. This includes:
- Floods
- Earthquakes
- Sewer backups
- Damages from lack of maintenance
- Sinkholes
Make sure to thoroughly examine your homeowners' policy to understand what is covered and what is not. This insurance is quite customizable, and you may be able to add some of these exclusions to your policy if you need them.
As with any insurance policy, your plan will have limits and deductibles. This means you are required to pay the insurance company a certain amount before they cover the rest of the damages. The policy will also have a limit on how much it will pay before the rest of the cost falls on you.
Looking for dwelling and homeowners insurance? G&G Independent Insurance can quickly search over 50 companies in your area to find you a great policy for the best rates!
What Types of Dwelling Insurance are Available to Me?
The type of specialty dwelling insurance coverage you have almost always corresponds to the type of dwelling you live in.
If you own a home of your own, specialty dwelling insurance is covered in your homeowners insurance. If you own a condominium, you need dwelling coverage that covers the areas of your condo that fall under your responsibility. The flooring, interior walls, and built-in appliances are two areas you may need coverage for, while the actual structure itself should be covered by your association’s master policy.
If you’re renting, you don’t need dwelling insurance and should instead look into renter’s insurance. Dwelling insurance is the responsibility of your landlord.
How Much Dwelling Coverage do I Need?
The amount of dwelling coverage you need depends on the cost of rebuilding your home. When your house is assessed for market value, you’re given a number that your home is worth in terms of buying. The cost to completely rebuild your home if it were to be destroyed is often a very different number.
You must consider the cost of materials and labor required to rebuild your home using similar materials to what is currently present. Many insurance companies can help you calculate this cost so that you don’t have to figure it out on your own.
Ready to start searching for specialty dwelling insurance in Arkansas? Get your free quote today!
Specialty Dwelling Insurance FAQs
1. What is specialty dwelling insurance?
Answer:
Specialty dwelling insurance protects non-standard homes like vacation homes, historic properties, or unique structures that may not qualify for traditional homeowners coverage.
2. What does it typically cover?
Answer:
Coverage often includes the structure, personal belongings, liability, and additional living expenses if the home becomes uninhabitable. Optional endorsements can expand protection.
3. How are premiums determined?
Answer:
Premiums depend on property value, construction type, location, and coverage limits. Unique properties may require appraisals or special underwriting.
4. Can I insure a rental property with this policy?
Answer:
Yes. Specialty dwelling insurance can cover rental properties, vacation homes, or seasonal residences. Liability and loss of rental income may also be included.
5. Do I need additional coverage for natural disasters?
Answer:
Standard policies may exclude floods or earthquakes. Additional endorsements or separate policies are recommended for comprehensive protection.
