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
Same as term Associate in Research and Planning: professional designation earned after the successful completion of six national examinations given by the insurance institute of America ...
Premium applied in workers compensation insurance and in life insurance. In the latter, it is the portion of a premium that is loaded to reflect an insured's expectation of loss, ...
Law that provided for federal crime insurance. Because private insurance is not available for business owners and residents of certain high-crime areas, the act provides that the federal ...
Same as term Face Amount: sum of insurance provided by a policy at death or maturity. ...
Coverage for items of property being delivered to a customer. The means of transportation covered include such common carriers as aircraft, railroads, trucks, express carrier, and other ...
Mechanism for providing coverage when the insured's underinsured motorist coverage limit is more than the tort feasor's limit of liability. ...
Same as term: Total Loss: condition of real or personal property when it is damaged or destroyed to such an extent that it cannot be rebuilt or repaired to equal its condition prior to the ...
Benefits provided to and obtained by those insured, while still alive. They include the annuity, cash surrender value, disability income, policy loan, and waiver of premium (WP). ...
Same as term Cost of Insurance: value or cost of the actual net protection, in life insurance, in any year (face amount less reserve) according to the yearly renewal term rate used by an ...
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