Q: To me, dwelling coverage sounds like the same thing as home insurance. After all, my home is my dwelling. I'd like to know the difference so I can make sure I'm covered.
Holly Yip is a Farmers Insurance® agent based in Wichita, Kansas. We asked her to tackle this question about dwelling coverage.
A: Think of home insurance as a package of protection. Dwelling coverage is simply one part of that package. It covers the home itself —not the contents or land. Just the structure. It is “Coverage A” in a home policy.
Now, dwelling coverage does include installed fixtures like cabinets and counters, and permanently attached appliances connected to public utilities, like some stoves or a water heater. These things are considered part of the dwelling. When it comes to insuring your dwelling, consider getting replacement cost coverage as opposed to actual cash value coverage. If your home burned to the ground and had to be rebuilt from scratch, the cost might exceed the market value of your home. A lot of times, there’s an eye-opening difference between replacement cost and market value.
That’s why Farmers uses a “replacement cost estimator” that helps you take into account your home’s features and characteristics, including building materials and upgrades, to create an estimated cost to rebuild or replace your home. A Farmers agent will go through the replacement cost estimator with you and ask questions to get the details of your home.
Talk to an agent about home insurance policy today.
Includes personal service from a Farmers agent.
The information contained in this page is provided for general informational purposes only. The information is provided by Farmers® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.