Normally used to insure investment, rental, vacation or seasonally occupied homes, dwelling insurance is a type of homeowners policy that provides very basic coverage for second homes at a minimal price.
What Makes It Different?
Designed to protect secondary homes against physical damage caused by fire and other named events, this type of coverage:
- Usually insures the dwelling plus any other structures on the property, such as garages or sheds
- Insures any of the landlord’s personal property used by tenants, such as furniture or appliances
- Covers landlords against loss of rental income when property is damaged and must be repaired
- Usually offers no liability protection for injury or damage to others (unlike other homeowner’s insurance policies)
This type of home insurance plan provides minimal coverage at a much lower price than traditional homeowner’s insurance–and that’s good news for those with more than one home!
Who Needs It?
Homeowners insurance can be expensive. But for those who acquire rental or investment property and don’t need to insure others’ personal possessions–as they would their own–a dwelling plan fits the bill.
For those who live in two or more residences each year, insuring both homes with a normal homeowner’s policy just doesn’t make sense. Why? Because such high levels of coverage simply aren’t needed most of the time–nor are the higher premiums that go along with them.
Sometimes, this basic coverage also makes sense for homes that are older, lower in value or have minor cosmetic damage. Since a home’s value depends largely on the condition of the house itself–and insurance premiums reflect this value–homes that cost less or need repairs don’t need as much home insurance.
Don’t take chances with that investment or vacation home. Contact us today and make sure your secondary home gets insured.