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
Display of percentage of earned premiums as a function of the time in days for term property insurance policies originally written for one year or longer. These tables are used to compute ...
Right to sell a given security at a stipulated price until a future expiration date. For example, assume the "None-Do-Well" company's stock has a market value of $20. Investor A sells ...
Same as term Limitations: exceptions and limitations of coverage; that is, the maximum amount of insurance coverage available under a policy. ...
Requiring assets and liabilities of an insurance company to go up or down together on a proportional basis. The duration of the asset and liability should be approximately the same. For ...
Same as term Contingent Business Income Coverage Form: coverage for loss in the net earnings of a business if a supplier business, subcontractor, key customer, or manufacturer doing ...
Complete coverage for hospital and physician charges subject to deductibles and coinsurance. This coverage combines basic medical expense policy and major medical policy. ...
Extra life insurance benefit found in the family income policy, family income rider, family MAINTENANCE POLICY, and FAMILY POLICY payable to the BENEFICIARY should the insured die within a ...
Ruling that, under current tax law, an insurance company that has incurred a net income loss in a given year may charge that loss against its taxable income in a subsequent year. This ...
Same as term Employee Benefit Insurance Plan: provision by an employer for the economic and social welfare of employees. Generally include: pension plans for retirement; group life ...
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