What is Dwelling Fire Insurance?
A dwelling fire insurance policy is a more affordable option for home insurance that covers specific damages caused by hazards. This type of insurance policy is very flexible to you and your home’s needs. It is not only for fire and smoke damage but can protect against all forms of weather and natural disasters, explosions and vandalism as well. This is a great option for someone who wants a more toned down, home insurance policy.
Who is Dwelling Fire Insurance For?
Dwelling Fire Insurance is for any homeowner who wants a more affordable option for an insurance policy for his or her home. The insurance policy can over a residence in which someone lives part-time or a residence that is rented out to others, so long as the residence is not the primary residence. Each policy is uniquely fit and crafted to each individual’s needs.
How Does Dwelling Fire Insurance Work?
Dwelling fire insurance only covers the very specific damages that are listed on the policy. The policies have the ability to offer coverage for just the home or for the items in the home as well. This depends upon how the homeowner customizes the policy as the policies, as aforementioned, are fully customizable and unique to each individual policyholder.
Different Types of Dwelling Fire Insurance Coverage in Existence
DP-1 is the most basic type of coverage that offers coverage for fire, lightning, and explosions from appliances. This basic coverage does have adds on available that cover items such as vandalism, storm damage, riot damage, vehicle damage, smoke damage, and volcano damage. Your claims come with a cash value benefit, though there is sometimes the option for a replacement value claim.
DP-2, or the broad form, is the next level of coverage. The add ons listed above are included, as well as burglary, snow damage, glass breaks, water damage, tree damage, freezing pipes, electric damage and building collapse and breaking. Replacement costs are given out with this type of insurance.
DP-3 is the highest level of coverage that is also called the special form. This covers all risks associated with a dwelling except any exclusions listed. Personal properties are also included. Each policy is unique but can offer war insurance, earthquake insurance, laws, intentional loss and neglect and losses due to the neglect such as mold and rust.
Major Benefits of Dwelling Fire Insurance
As mentioned, this type of insurance is a more affordable option for individuals who own other houses than their primary residences. It is highly customizable and unique depending on the coverage you choose. Many dangers that are included in these policies are also not included in typical home insurance policies.