Dwelling Insurance

Also known as main structure coverage, dwelling coverage forms part of a standard homeowners insurance policy and pays for the repairing or rebuilding of your home’s physical structure such as walls, floors, roof, windows, support beams and foundation, should your home suffer from a natural peril (forces that cause loss) listed in your policy.

What Is Dwelling Insurance?

In the event that you need to make a claim, insurance carriers will reimburse you in one of two ways. These are known as "actual cash value" and "replacement cost." The difference can be stark, particularly when it comes to replacing older or worn elements of your home, so be sure to know the differences and confirm with your insurer which applies to your policy.

Types of Dwelling Insurance

Actual Cash Value

This calculation takes into account depreciation thereby reducing the value of the items used to repair or replace your home in the event of a claim. Since this method of determining value reduces the insurer’s settlement amount, it in turn, reduces your monthly premiums. However, before opting for this reduced premium option keep in mind that the quality of material used may be of a lower standard since the value has been reduced by depreciation. Therefore should you wish for better quality items to be used, the difference in value will have to come from your pocket.

Replacement Cost

This method can cover the cost to replace or rebuild your home with materials of like kind and quality. This means that in the event of a claim, you'll be covered for the amount necessary to get your life back up and running as it was before the loss. This is how Kin Insurance works. Be mindful of this as you compare policies.

By way of an example, if you suffered a loss and need to replace your 8 year old TV, using the ACV method, your insurer would attach a value to the TV based on a similar 8 year old TV in a similar condition to yours. Using the replacement cost method, your claim will be based on the cost of buying a new TV of the same brand and of similar kind and quality. In this example, it’s evident that your settlement amount using the ACV approach will be less than the settlement amount using the replacement cost approach.

With regards to covered perils, these differ between insurance providers, particularly with respect to limits. Thoroughly read your policy to be sure you are aware of what your insurance provider will cover and the applicable limits, should damage or loss occur. In particular, your geographical location may result in certain perils being excluded from your main structure coverage. If you are unsure about a particular insured hazard or have questions about anything, it’s best to speak to your insurance agent as you don’t want to be faced with any surprises at the time of filing a claim.

What Does Dwelling Insurance Cover?

Standard main structure coverage typically covers damage caused from the following perils:

  • Fire / smoke
  • Hurricane
  • Hail
  • Lightning
  • Explosion
  • Water damage caused by burst pipes or overflowed household appliances
  • Theft and/or Vandalism
  • Falling objects
  • Weight of ice, snow, or sleet
  • Impact by aircraft or land vehicle
  • Riots

Damage caused by the following are generally not covered:

  • Earthquake
  • Flood
  • General wear and tear
  • Lack of regular and proper maintenance

How Much Insurance Do I Need?

Determining how much coverage you need is largely dependent on the cost to rebuild your home (including labor) using like materials should you suffer a complete loss from an insured peril. A Kin Insurance agent can give you an estimate using our sophisticated replacement cost calculator, which you can then choose to verify with a specialized home inspection. It may be tempting to reduce your premiums by lowering your insured value, but this could result in significant financial impact to you should you be faced with a catastrophe where your insurance settlement is less than the rebuild cost at the time.

To get started, give us a call at (855) 717-0022, or begin your no-obligation quote with one click here, where we can show you an estimate with only your address. 

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Insurance Resources

Your policy coverage is only the tip of the iceberg. We've put together these resources to help you understand the other aspects of your policy that you should consider while shopping around.

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