Dwelling Insurance

Dwelling Insurance provides protection for individuals and families against loss to their dwelling and personal property. Homeowner’s insurance covers dwellings and personal property but these two policies are different from each other. Let’s take a look.

1. The dwelling policy provides more limited property coverage than the homeowner’s policy.

2. The unendorsed dwelling policy provides property coverage only, while the homeowners policy provides a package of property and liability coverages.

The dwelling policy has three separate forms.: the basic form, the broad form, and the special form, each providing a higher level of coverage than the last.

To be covered under a dwelling policy, a dwelling may have up to five boarders and up to four apartments. The dwelling doesn’t have to be occupied by the owner. A dwelling policy may also be used to insure a mobile home meeting certain qualifications, including that it be permanently located. Mobile homes can only be covered under the basic form. The policy is also used to insure homes that do not qualify for homeowners insurance. For example, the owner of a home that is rented to tenants could not insure the home under a homeowners policy but could insure it under a dwelling policy. Dwelling policies are also frequently used to insure vacation homes.

Eligible dwelling property does not have to be exclusively residential. Certain incidental business and professional occupancies are allowed. Examples of permitted occupancies include beauty parlors, photography studios, and professional offices.

If you would like more information on this topic or would like to know which policy will be better for you, give us a call at 860 684 2721 or visit our website.

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