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 Occurrence Basis: coverage, in liability insurance, for harm suffered by others because of events occurring while a policy is in force, regardless of when a claim is actually ...
In property insurance policy, clause that stipulates that if legislative acts or acts of the insurance commissioner's office expand the coverage of an insurance policy or endorsement forms ...
Amount received by the policyholder if the policy is canceled, benefits are reduced, or the premium is reduced. ...
Same as term Commutation Right: right of a beneficiary of a life insurance policy to exchange the future installments due that beneficiary for a lump sum distribution. ...
That which cannot be touched; having no meaning to the senses. It is represented by incorporeal rights in property (that which is evidence or represents value; for example, a copyright). ...
Association that represents reinsurance companies as well as insurance companies that do not market marine insurance. LIRMA and the institute of London underwriters share the same facility ...
Peril that occurs when personal property of two or more people is mixed to such an extent that any one owner can no longer identify his or her property. ...
Trade association of property and casualty insurance companies that do not have membership in a rating bureau. These companies do not follow standard rates and forms authored by a rating ...
Same as term Corridor Deductible: type of major medical deductible amount that acts as a corridor between benefits under a basic health insurance plan and benefits under a major medical ...
Have a question or comment?
We're here to help.