Dwelling insurance protects the physical structure of your home and is part of your standard home insurance policy. Coverage varies depending on the policy you choose.
Miranda is a financial writer and avid podcaster with nearly two decades of experience contributing to major outlets, including Forbes, The Hill, and NPR.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Dwelling insurance is only part of your homeowners insurance policy. Also called Coverage A, dwelling insurance covers the physical structure of your home.
It might also cover permanently attached structures, such as your garage, porch, or deck. If certain covered perils damage your home, such as a fire or tornado, dwelling coverage can help you pay for repairs.
Comparing home insurance quotes can help you find the best deal on dwelling coverage. Here’s a look at how this insurance protects your home.
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What dwelling insurance covers
Dwelling insurance is just one part of a standard homeowners insurance policy, also known as Coverage A.
Dwelling insurance generally covers the following:
The physical structure of your home
Chimneys and roofing
Permanent fixtures in your home, including cabinets, countertops, windows, and flooring
Wired-in appliances, like your stove and water heater
Attached structures, like a deck, garage, or porch
Your home’s foundation
Dwelling insurance covers damage to your home caused by the following perils:
While dwelling insurance covers many aspects of your home, it doesn’t cover everything. Below are some things that dwelling coverage excludes:
Damage to or theft of personal belongings: Most policies cover these in a different capacity, under Coverage C for personal property.
Detached structures, such as a gazebo, pool, or fence: These also usually don’t receive coverage in a dwelling policy. You’d need other structures coverage, or Coverage B, for these.
Earthquakes and floods: These usually require specific add-on protections for coverage.
The land your home is built on
Other parts of the home, such as maintenance lines and sump pumps
Water back-ups
Damage caused to your home’s structure due to lack of maintenance
Types of dwelling coverage
The nature of your dwelling coverage relates largely to the type of dwelling where you live.
If you own a home
In general, a dwelling insurance policy is based on your home’s replacement cost. You can also get a replacement cost policy that’ll cover the cost of construction materials, labor costs, and other items that might go into rebuilding your home. Actual cash value coverage can also help you repair or replace necessary materials — but these policies take depreciation into account, meaning your total compensation will likely be less than you originally paid for the item.
Important Information
It’s important to note that, in many cases, your dwelling coverage alone might not be sufficient to cover the cost of necessary repairs.
If you own a condo
If you live in a condo complex, you need to understand the differences between your own condo policy and what the condo association’s master policy covers. There are dwelling coverage limits based on who’s responsible for which parts of your condo, the overall structure, and the common areas. Condo owners should know what’s covered and the maximum amount the master policy will cover.
Also, if you have condo insurance, you need to pay attention to your HO-6 policy, which applies to the parts of the structure you own rather than the common areas of the condo complex.
If you’re a landlord, it’s important to understand how this works. Make sure you’re on the same page with your insurance company so you know what you’ll have to cover.
You need enough dwelling coverage to cover the cost of rebuilding your home if it’s completely destroyed. Your dwelling coverage amount will probably be different from the purchase price of your home. The amount it’ll cost to rebuild your home if it’s a total loss depends on the age and size of your home, as well as building costs where you live.
As you determine coverage, realize that your mortgage lender or financial institution might require basic coverage amounting to your home’s market value. But you might need more coverage if you’re worried about things like how the replacement cost of your home might change later.
The limits of the actual policy are usually spelled out, so consider the descriptions of covered items, the coverage amount you want, the square footage of your home, and the contents of your home. Look at whether you would need to rebuild attached structures, like a porch, garage, or deck, and how much that might cost.
Finally, don’t forget to consider the loss of use you might experience and other risks, such as flooding and personal property coverage. Some of these might come with limits or be outside the scope of your dwelling coverage. Talk to your insurance agent about how to get the right amount of dwelling insurance in conjunction with other coverages.
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How to file a dwelling insurance claim effectively
If your home’s physical structure is damaged, you’ll likely want to file a claim to get help repairing or replacing some or all of the structure. Follow these steps to file a dwelling loss claim:
1. Document the damage
To get the best results, you should document your home’s state before the event too. Take pictures, keep good records, understand the specific facts of the situation, and review your coverage to make sure you have what you need.
2. Make temporary repairs
Depending on the extent of the damage, make any necessary temporary repairs so that your home is safe. Keep receipts of what you spend so you can submit them with your claim.
3. Contact your insurance company
Depending on the insurer, you might be able to do this through a website or mobile app or make a phone call. Your insurer will ask questions about the situation and the damage. Try to be as concise as possible. Having pictures available will also greatly help the claims process.
4. Meet with the insurance adjuster
Your insurer will also perform a loss assessment at your home. A good rule of thumb is to prepare ahead of time with documentation so you can show that your home truly was damaged by a covered peril.
5. Get estimates and review the settlement offer
Based on your insurance company’s estimated costs to repair the damage to your home, you can start getting quotes from contractors. When your insurer sends you the settlement offer, read it carefully so you understand the full amount and what it covers.
6. Receive your claim settlement and make the necessary repairs
If you agree with the insurer’s settlement offer, you can accept it and begin making repairs to your home. If you don’t agree with the offer, you can talk with your claims manager or consult an attorney.
Dwelling coverage FAQs
If you’re trying to decide how much dwelling coverage you need, this additional information may help as you research your options.
What is Coverage A in dwelling insurance?
Coverage A is part of a standard HO-3 homeowners policy that deals with the actual structure of your home. It includes your floors, walls, windows, roof, plumbing, electrical, and certain appliances that are wired into your home, such as a stove or water heater.
Will homeowners insurance cover dwelling damage?
Yes. In general, damage to your dwelling is considered part of your overall homeowners policy.
Does dwelling insurance cover water damage?
It depends. Much of the water damage sustained in a home isn’t covered by your dwelling coverage. Structural damage due to burst pipes might be covered, but a sewer backup usually isn’t. Windstorm damage might be covered, but damage from flooding probably won’t be. It’s important to understand insurance terms and talk to your agent to ensure you get the right coverage.
How can you reduce the cost of your dwelling coverage?
If you’re concerned about reducing your monthly premium, you have a few options. You can ask for discounts based on associations you belong to or from bundling coverages. You can also increase your deductible on your homeowners policy to get lower premiums. Finally, you can also compare quotes to see if you can find the same coverage at a more affordable rate with another insurance company.
What does 100% extended dwelling coverage mean?
While there isn’t an official type of insurance called 100% extended dwelling coverage, you can get extended replacement cost coverage for your home. This policy type pays a certain percentage over your dwelling coverage limit to rebuild your home — 20% or more, depending on your insurance company. Extended replacement cost coverage is designed to help you pay for repairs if construction costs increase unexpectedly or there’s a shortage of building materials where you live.
Miranda Marquit, MBA, is a freelance financial writer covering various markets and topics since 2006. She has contributed to numerous media outlets, including Forbes, TIME, The Hill, NPR, HuffPost, Yahoo! Money, and more. Her work has been syndicated by MSN Money, Marketwatch, Credit.com, and other publications. She has written about insurance topics for Clearsurance, HealthCare.com, and various other websites. She is also an avid podcaster and co-hosts the Money Talks News podcast. Miranda has a Master’s Degree in Journalism from Syracuse University. Connect with her on LinkedIn.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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