Dwelling Insurance
Dwelling insurance is how it’s called the most obvious coverage type under the homeowner’s insurance umbrella. It deals with the damages done to the physical structure of the house.
Let’s see an example:
Homeowner Brad has a house that got struck by lightning. The electrical discharge damaged his whole wiring system and even burned down the TV! While the personal property insurance will take care of the TV, as it is a personal Homeowner Brad’s possession , the dwelling insurance will deal with the costs of renovating the house’s wiring.
Another example. Let’s maximize the perils on this one:
While you were out working, a burglar broke inside the house by trashing your home security system to steal a nice sculpture you have. But when he got inside; plot twist: there was a Maid inside cleaning your house! Scared, the burglar pushed the Maid, hurting her head, but managing to get the sculpture and fleeing through the window.
The dwelling insurance will cover the repair of the home security system - though maybe you should consider looking for a new one, huh? - and a new window, because the old one was broken by the burglar on his way out. The liability insurance will cover medical and legal expenses related to the Maid, who deserves a safe place to work and the personal property insurance covers the losses from the sculpture you no longer have.
Real Estate tip:
Why stop at dwelling insurance? Learn all types of coverage and many more words with our Real Estate Glossary Terms! Search away!
Popular Insurance Terms
Coverage provided for the insured's personal property in the event the insured incurs a loss resulting from theft, burglary, robbery, or malicious mischief, regardless of whether the loss ...
Provision of liability policies and the liability sections of package insurance policies, such as the personal automobile policy (pap), that pay medical expenses without regard to fault. ...
Coverage in the event an employee is kidnapped from an insured business's premises and forced to return to aid a criminal in a theft. ...
Pension funding agreement under which funds paid into a retirement plan are not currently allocated to purchase retirement benefits. The funds of one plan can not be commingled with funds ...
Method of underwriting by which one or a group of Lloyd's underwriters write business on behalf of a number of Lloyd's syndicates and other insurance companies. Among the benefits of ...
Property or liability coverage that provides benefits (usually after a deductible has been paid by an insured) up to the limits of a policy, regardless of other insurance polices in effect. ...
Curve that results when yields on short-term treasury issues exceed those on long-term government debt. A widely accepted theory holds that when short-term and intermediate term issues are ...
Deleveraging of the insurance company's balance sheet. ...
Extension of coverage available under the Standard Fire Policy. The standard policy only covers the perils of fire and lightning. The endorsement covers riot, riot attending a strike, civil ...
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