Dwelling Fire Insurance
WHAT IS DWELLING FIRE POLICY INSURANCE?
- Dwelling Fire Insurance protects a home against the perils specifically named in the policy. Many common causes of damage, such as fire, hail, and lightning, are usually listed as covered “named peril” in a Dwelling Fire Policy. If something other than the named peril causes damage to the home, the policy does not cover the loss. It is important to know that Dwelling Fire Insurance is not broad form coverage, as a HO3 Homeowner Policy. The HO3 is all risk coverage unless specific exclusions are listed.
- Dwelling Fire Policy Forms Two and Three provide coverage on a Replacement Cost basis in the event of a loss. The DWG-1 is on an actual cash value basis in the event of a loss. This means that you will be paid for the actual cash value of your home and other structures that are destroyed or damaged due to a covered loss.
frequently asked questions regarding dwelling fire insurance coverage
WHO NEEDS DWELLING FIRE COVERAGE?
- For those who acquire rental and investment property and do not need to insure others’ personal possessions, as they do their own, the Dwelling Fire Insurance Policy fits the bill.
- If you own one or several tenant occupied rental properties, our agency can shop around to find the best possible price with group rates for multiple properties, so if you are a landlord driven by huge rate increases on current policies, we can help!
- Homeowner’s Insurance can be quite expensive these days if the size of your home does not require a larger more complex policy. A Dwelling Fire Policy may save you a substantial amount of money.
- If you have a much older home or your home’s value is less than $50,000, you may only be eligible for a Dwelling Policy or a limited Homeowner Form called HO1 or HO8.
- If you only want to cover just your dwelling structure and eliminate the other package coverage such as other structures detached, contents, liability, or additional living expenses, you can substantially reduce your homeowner’s insurance cost.
- Dwelling coverage is available from one to four family dwellings (four-plex apartments, as long as owner occupies a unit).
- For those who live in two or more residences each year, insuring both homes with a traditional homeowner policy just doesn’t make sense because it is double the expense. Dwelling Fire Insurance provides minimal coverage at a much lower price for seasonal property, camps, or a second home.
HOW MUCH COVERAGE WILL I NEED?
- We will assist you in determining your replacement coverage, which may be quite different from the price you paid for the home. We will use some of the following information to determine the amount of coverage you need for your dwelling coverage:
- Replacement costs estimators supplied by carrier we are quoting.
- Current or most recent appraisal.
- Your square footage vs. purchase price vs. mortgage lender’s requirement figure is used to help formulate coverage required.
- Whether currently insured limits on existing policy can be reviewed.
- If this is a new purchase, our agents will assist you in contacting your lender regarding insurance requirements for both building and flood.
We will contact your lender or real estate agent for appraisals and/or inspections and flood elevation certificate, which will accelerate the closing date.
- Named Perils: Burglary, Vandalism, Fire, Windstorms, Lightning, Falling Objects, Collision with Vehicles or Aircraft, Hold-Ups, Electrical Malfunction, Broken/Freezing Pipes, Injuries to others on and off property, Damage to others’ property, Gas Leak Explosions, Civil Commotions and Riots, etc.
COVERAGE BELOW CAN BE ADDED OR REMOVED BASED ON OCCUPANCY
|Tenant Occupied:||Owner Occupied:|
|Dwelling Coverage||Dwelling Coverage|
|Other Structures||Other Structures|
|Lost Rents if Uninhabitable||Contents|
|Liability||Loss of Use (additional living expenses)|
- Contents are covered on and off premises so if you are out of town on vacation or on a business trip, your personal belongings, if lost, stolen or destroyed, such as cameras, video recorders, luggage, or laptop are included under extended coverage up to 10% of total content.
- Content Extended Coverage also includes a family member who may be residing off premises with a home computer and other personal belongings at the college dormitory.
- Premises Guest Liability will protect you from lawsuits for slips or falls that your negligence caused. Citizens must add this liability as a stand-alone policy when coverage is affordable. Since medical payments are not available under this policy, the liability will include this coverage based on type of claim.
- Other Structures include any adjacent structure or detached structure, including storage buildings, garages, or workshops that have a slab and a skeletal frame.
- Additional Living Expenses are covered if owner occupies the dwelling. Coverage starts when home is uninhabitable by any covered peril. Also pays for increase in your living expenses while you are displaced due to mandatory evacuation. This coverage is provided to you if dwelling is occupied by insured, not a tenant.
- Lost Rent Coverage - If tenant occupied additional living expenses becomes loss of rent coverage for the landlord. This coverage starts immediately when dwelling is made uninhabitable by a named peril. Coverage is 10% of the dwelling amount times the number of months unoccupied. Therefore, a $50,000 dwelling would equal $5,000 loss of rent annually.
RECORDS WORTH KEEPING:
Keep good records of all your personal belongings with photos or video tapes, owner’s manuals, sales and credit card receipts, and cancelled checks. Good records will accelerate your claim handling. In anticipation of a total loss, you should keep additional records off site.
WHAT ABOUT BUILDER’S RISK/VACANT PROPERTY INSURANCE?
- If you are a Landlord looking to remodel, sell, or find tenants to occupy, you may also need a Builder’s Risk Policy for the remodeling or renovation process. Our area currently is rich with many homes that need Builder’s Risk Policies for our local investors who buy shotgun doubles and hurricane-damaged homes throughout our area to use for rental income or to flip for a quick return on their dollar. Please be informed that these homes require plenty of renovations, so make sure that you understand that we can offer a Builder’s Risk or Renovation Policy to accommodate a substantial remodeling before the building is occupied or sold. Please see website for more information or you can call us directly at (504) 441-RATE(7283).
- We also offer Vacant Property Coverage for homes that are unoccupied and are just sitting on the market waiting for a buyer. Our rates are based on occupied, unoccupied, or ready-to-be-occupied and/or not-ready-to-be-occupied, based upon the condition.
Products Associated with Dwelling:
- Discounts available on package dwelling/flood.
- Mortgage Life - low cost coverage that makes it very affordable to pay off your mortgage in the event of death, disability, unemployment, or critical illness.
- Personal Umbrella for up to $5,000,000.
- Personal Disaster Policy.
- Offer to owner and tenant.
- Multi-dwelling policy discount.
Proof of Required Documents:
- Alarm System Certificate if you received a discount.
- Pictures of front and back of building.
- Proof of prior coverage, if applicable.
- Current Appraisal.
- Lien holder requirements and mortgage clause.
- Exact closing date for binder to start.
To request quote information on your property and/or properties, including Dwelling, Builder’s Risk, Renovation, or Vacant Property complete the quote request form or you may contact us directly at (504) 441-RATE(7283).