insurance
Dwelling Coverage
Definition: Insurance that protects the physical structure of your home against covered perils.
Dwelling coverage (Coverage A) is the portion of your homeowner's policy that protects the physical structure of your home—the building itself.
What's Covered:
- The house structure (walls, roof, floors)
- Attached structures (garage, deck, porch)
- Built-in appliances
- Plumbing, electrical, and HVAC systems
- Permanent fixtures (cabinets, built-in shelving)
What's NOT Covered:
- Land value
- Detached structures (covered under Other Structures)
- Personal belongings (covered under Personal Property)
- Landscaping (limited coverage)
How Much You Need:
- Coverage should equal the cost to REBUILD your home (not market value)
- Rebuilding cost includes labor, materials, and contractor fees
- Update coverage after renovations or additions
- Consider local construction costs
Guaranteed Replacement Cost:
Coinsurance: Most policies require you to insure your home for at least 80% of its replacement cost. Insuring for less can reduce your claim payouts.
Related Terms
Replacement Cost Value (RCV)
The cost to replace damaged or stolen items with new items of similar kind and quality.
Other Structures Coverage
Insurance protecting detached buildings on your property like garages, sheds, and fences.
Coinsurance
A policy requirement to insure your property for a minimum percentage of its value, or face reduced claim payments.
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