What is Dwelling Insurance? | Allstate Insurance
what is a dwelling well think of a dwelling as residential property where one might dwell one might live or stay a dwelling could be a vacation home it could be a rental home or even an older home usually older homes that are not eligible for a homeowner's policy would get a dwelling policy purchase so the dwelling has limited coverage but certain coverages can be endorsed to it
today we're going to go over the three types of dwelling policies that what they cover and the best way to remember coverages for your exam so some of the characteristics for dwelling policy are as follows so a dwelling policy is used to ensure a 1 to 4 unit residential they can either be owner or tenant occupied this is important to know because once
you start getting into homeowners home owners have to be owner occupied before a dwelling policy you could rent that you can rent out your home to a tenant and still get a dwelling policy on your home so mobile homes may be insured under the dwelling program but only for the basic coverage so we'll learn later that there are three different types of coverages there's basic broad and special and only the basic
would cover mobile home so note farm dwellings or other farm property are not eligible for the dwelling program there are specific forms for farm and ranch exposures so barnyards are not going to be covered there's nothing farm farm dwellings or farm structure related dwellings will not be covered under
your dwelling policy or your homeowners so here are a few things we need to know before we get into the coverages you need to understand if you're looking in the ensuring agreement of a dwelling Paul see you'll find the perils that are covered specifically by name if it's a named peril policy so a name peril policy means like we just studied on a fire policy then the perils that were named in that policy was fire lightening and removal that is considered a name
peril policy an on risk policy is also known as an open peril policy if it's an open peril policy aka all risks then all risks are covered and there are no perils listed because all risks are covered this can be confusing because although it's an all risk coverage it really doesn't mean that everything is covered you're still going to have exclusions so basically all risks are covered unless they are excluded and you'll find that all risk coverages will have the most exclusions so on an onerous policy you'll find out what's covered by checking the exclusions and making sure that the peril is not excluded now
there are different ways that that property is valued replacement cost value is in most cases is better than actual cash value because you're going to be paid out what it costs to restore the asset the actual cash value where the payout of your loss will be depreciated value not necessarily that what you paid for the asset but typically what it's worth minus the depreciation and then you have the agreed stated value or the agreed value this is the amount that the insurer agrees to pay for the asset also known as state about you so we just went over them okay so you have your replacement cost value most homes are going to be insured at a replacement cost value you have your actual cash value most most of your most of the time personal property is going to be replaced at an actual cash value and sometimes an agreed stated value depending on the value of your personal items so
this is a quick overview of what we're going to talk about in the next few slides again this is the industry standard for a dwelling policy and let me let me close it up a little so you can see it okay so you have coverage a which is your structure and coverage a so you have coverage a b c d and sometimes e so coverage a is your structure this covers the dwelling this covers the building including any equipment material for construction used to maintain or service the premises coverage B covers other structures and it typically will cover 10% of whatever coverage a is worth coverage C is going to cover personal property your personal items your TV your Xbox your chairs your expensive table you know that's going to be under coverage C coverage D is covering fair rental value coverage e additional living expenses the next few slides we are going to get into this in a little bit more detail this is just an overview coverage a B C D and E so coverage a the coverage a section of a dwelling policy known as dwelling or structure coverage offers protection against direct physical damage caused to the dwelling any
structures attached to the dwelling including
materials and supplies necessary to rebuild or repair the home it's important to note that materials and supplies are covered in this section one might confuse those materials with personal property which would be coverage C not a but materials are covered in coverage a of a dwelling policy if it's used to prepare the dwelling remember that coverage be offers protection for direct losses to structures that are not attached to the dwelling like your back houses your sheds unattached garages if the property is attached to the dwelling it would be a part of the dwelling covered in coverage a but if it's not attached then it's going to be covered in being remember farmhouses barn yards in the back of or barns in the back of the dwelling is not covered because farm structures are not covered on a dwelling policy period so don't forget that but anything else such as back houses those would be covered under coverage be other structures so coverage be other structures is going to be covered at ten percent of coverage a so
Dwelling Insurance? | Allstate Insurance
if your house if you're dwelling burnt down and it was worth a hundred thousand dollars your replacement cost is a hundred thousand dollars but then coverage B will pay ten percent of that so you would get ten thousand dollars covered in for coverage B so on so we're gonna talk about coverage see personal property so on a dwelling policy this is an optional coverage and if you had it it would cover your personal property or your personal items in the dwelling so coverage C covers personal property of the insured's who is considered the insured that's important to know typically it's going to be the name insured and their spouse and the family related okay if you have somebody that lives in the home and they are renting a room they are not going to be considered on they're not going to be considered insured so if there was a fire and their items burnt down it would not be covered so coverage C is going to cover 50% of coverage a so if coverage A's replacement cost was $100,000 then coverage C would cover 50% of that hundred thousand dollars the most that your insurance
company would pay for the property damaged in the dwelling would be fifty thousand dollars because it covers fifty percent of coverage a it also covers items that are away from the premises an example is if you were out of town for a meeting or for whatever reason and you took your laptop and you were in the hotel and the hotel burnt down or something happened and in the laptop was damaged it will cover your personal items away from the home but at a different coverage level of different percentage it will cover 10% of coverage C so if you coverage a was 50% of I'm sorry of coverage C is 50% on premises of coverage a that would make it $50,000 right then your laptop is damaged outside of the premises that will be 10% of $50,000 tempers of coverage see not don't do not confuse this because a lot of people will confuse it with 10% of coverage a when it's actually 10% of coverage see okay there are some personal property that's entirely excluded on a property policy on your dwelling anger home usually and that's animals if your animals are hurt or death occurs birds fish those are not covered as personal property on a dwelling policy your motor vehicles are not covered like your car is not going
to be covered that's because it should carry it is it's assuming that it should carry your auto an auto policy coverage there are some motor homes that would or some motor vehicles that would be covered and that's going to be anything that's used to service the premises or designed to assist the handicapped an aircraft your personal jet is not going to be covered unless it was like a hobby aircraft something that you know you that's small enough not something that you use as a a jet or you fly around in property of your rumors unless they're related to you so I talked about that earlier somebody's raining a room their property is not going to be covered under coverage see they have to get their own personal property
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coverage in order for that to be covered then you have coverage the fair rental value this coverage is going to be applicable to those who are renting their dwelling it's an indirect coverage that applies when you're renting your property out and suffer a loss of rental income due to a covered peril so if the house is burnt down and your renters your tenants have moved out because the house is burnt down and they may be living somewhere temporarily until until the house gets fixed or they may have just completely moved out you will receive a fair rental value you are going to receive what they pay you know usually it's
going to be what they paid for rent under this coverage on the other note there's coverage e coverage is called additional living expenses now this is if you the name insured was lived in that home you had to move out while the home is being repaired you have to go to a hotel or you're renting another home it's an indirect coverage that applies when the resident premises is unfit to live in due to a covered peril this coverage pays for necessary increase in living expenses hotel expenses some cases it will pay for transportation if you had if you had to transport further to work and you're paying extra for transportation things like that so it's additional living expenses anything additional that you have to pay because of moving out of the home into another area