Most homeowners are familiar with the benefits and basic coverage available with a homeowners policy. There's another type of insurance available for residential homes as well that far fewer people are aware of: dwelling insurance, which differs from homeowners insurance in many ways.
At times, people over-insure homes with full homeowners policies when a less expensive dwelling policy would be adequate.
Definition and Function
Dwelling insurance is a type of insurance policy used to insure only a dwelling. It doesn't cover any surrounding property or any personal items contained inside the dwelling.
In addition to stand-alone dwelling insurance, some companies sell Landlords Dwelling Insurance that protects the landlord for loss of income due to damages to the house. Other companies sell types specifically for vacant dwellings.
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Dwelling insurance is most common in places where second vacation homes are popular, such as Florida.
Dwelling insurance can be cost effective for people who own more than one home.
Dwelling insurance shouldn't be used to employ primary residences in areas that are prone to catastrophic weather, as these policies will not pay to replace any personal effects lost by cataclysmic events.