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
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Type of trust used to remove assets from a surviving spouse's estate, thereby excluding such assets from federal estate tax upon the death of the surviving spouse. This type of trust allows ...
Offer made by the insurance company to insure an applicant, provided the applicant is insurable according to the underwriting standards of the company, and the applicant accepts the offer ...
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Insurance company whose domicile is in a state other than the one in which the company is writing business. ...
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). ...
Stock life insurance company that sells participating insurance and nonparticipating insurance. ...
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