WEDNESDAY, NOVEMBER 30, 2022
Many people own multiple dwellings. One home may serve as their primary residence, and another may be a vacation or seasonal home that they use periodically. Regardless of the type of home, individuals should have insurance coverage that adequately protects their dwelling from various perils (e.g., fires) whether they occupy it regularly or occasionally.
The RCU Insurance Services Team in Santa Rosa, California, can help you select the insurance that best fits your needs. Contact us today for more information.
What Is the Difference Between a Dwelling Fire Policy and a Homeowners Policy?
Homeowners insurance and dwelling fire insurance may seem like the same type of coverage as they both provide coverage for your property, but they have key differences, discussed below
What Does Homeowners Insurance Cover?
Homeowners insurance can cover your primary home, its attached structures and your personal possessions from losses due to perils such as fire, theft, vandalism or other insured incidents. Your primary residence is where you live for the majority of the year and where you keep most of your belongings.
Homeowners insurance also typically includes personal liability protection, which may provide coverage if you’re legally responsible for others’ property damage or bodily injury.
What Is a Dwelling Fire Policy?
Dwelling fire insurance provides coverage for homes aside from your primary residence, such as vacation homes, cabins or investment homes. A dwelling fire policy may cover repairing or rebuilding your property if you have fire damage, including decks, porches or attached garages. However, your dwelling fire policy has three crucial differences from your homeowners insurance:
1. Dwelling fire insurance generally insures secondary homes that aren’t your primary residences.
2. Dwelling fire insurance doesn’t include liability coverage.
3. Dwelling fire insurance doesn’t insure the belongings inside your home.
Different levels of dwelling fire insurance may be available, which can add coverage for other named perils, such as vandalism, falling objects or collapse. Consult with our agents for more information and to discuss options, limits and exclusions.
When Would I Need Dwelling Fire Insurance Instead of Home Insurance?
Home insurance may be the best coverage for your primary residence. If you have a vacation, vacant, seasonal or investment property that isn’t occupied year-round but still needs protection, dwelling fire insurance may be your best choice.
A dwelling fire policy may also be an option if a bad credit report, a history of claims or a property that’s in poor condition make it difficult for you to obtain standard homeowners insurance for your primary residence. A dwelling fire insurance policy may offer some financial protection for damage to your primary dwelling in these circumstances.
Coverage for All Types of Homes
It’s essential to understand the types of home insurance that may give you the necessary financial protection. Because there are numerous differences in home coverage types, RCU Insurance Services can review your properties and help you decide what may be most beneficial for your needs.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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