How Is Dwelling Coverage Different than Home Insurance?

How Is Dwelling Coverage Different than Home Insurance?

How Is Dwelling Coverage Different than Home Insurance?

Here’s a quick explanation of dwelling coverage:

  • Dwelling coverage is one part of your overall home insurance policy. 
  • It covers your home’s structure —not its contents or land. 
  • Features like installed fixtures and permanently attached appliances are also covered. 
  • You can select enough dwelling coverage to rebuild your home at today’s prices.


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.

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