What Is Dwelling Coverage

By the Mercury Team

When shopping around for homeowners insurance, you may have come across terms like “dwelling insurance” or “dwelling coverage.” Insurers define a dwelling as the home you and your family actually live in. Anything attached to your house — e.g., garage, deck, porch, etc. — is part of your dwelling. This also includes built-in fixtures such as refrigerators and ovens.

Keep reading to learn more about dwelling coverage, what it does and doesn’t cover, and its limits and deductibles.

What is Dwelling Coverage?

Think of your homeowners insurance policy as an umbrella with multiple coverage options underneath it. Dwelling coverage is one part of that group under your homeowners insurance umbrella. It helps cover the physical structure of your home — i.e., the foundation, walls, roof, etc. — as well as anything attached to or permanently installed in your house, such as garages, cabinets, and HVAC systems. If any of these things get damaged due to a covered loss, dwelling coverage may help pay for the replacement, repair, or rebuilding costs.

When considering a dwelling policy vs. homeowners policy, homeowners policies often include other types of coverage, making them more comprehensive. These include:

• Personal property coverage: This covers your belongings, such as furniture, electronics, clothing, and other personal items, if they are damaged, stolen, or destroyed by a covered event.
• Liability coverage: This protects you if someone is injured on your property or if you accidentally cause damage to someone else’s property. It can help pay for legal fees, medical expenses, and other costs associated with these incidents.
• Other structures coverage: This covers structures on your property that aren’t attached to your home, such as fences, sheds, or detached garages.
• Loss of use coverage: If your home becomes uninhabitable due to a covered loss, this coverage can help pay for additional living expenses, like hotel stays or temporary housing, while repairs are made.

Contact Mercury today for a fast, free quote!

What Does Dwelling Coverage Cover?

Most standard homeowners insurance policies help protect your dwelling from the following perils:

• Fire
• Lightning
• Smoke
• Explosions
• Hail
• Vandalism
• Theft
• Falling objects
• Windstorms
• Damage caused by the weight of snow, ice, or sleet
• Damage caused by aircrafts
• Damage caused by vehicles

Dwelling coverage can vary from state to state and region to region, so be sure to talk with your local agent to see what perils your homeowners insurance policy covers.

What Is Not Covered Under Dwelling Coverage?

While dwelling coverage covers a wide range of perils, it doesn’t protect your home from every incident. Here are some of the situations dwelling insurance doesn’t cover:

• Floods — Thankfully, you can purchase a separate insurance policy if you live in an area prone to flooding.
• Earthquakes — Similarly to floods, you’ll need to get a separate policy to protect your dwelling from earthquake damage. If you’re a California homeowner, we highly recommend purchasing earthquake insurance.
• Sewer backups — Mercury offers Service Line Protection to help safeguard your home from these types of incidents.
• Damage due to a lack of maintenance — Dwelling coverage won’t cover damage that proper home maintenance could have prevented.
• Damage caused to detached structures on your property — Dwelling coverage doesn’t cover damage caused to structures separate from your house, such as sheds, fences, barns, and carports. However, the other structures’ coverage on your homeowners insurance policy may help cover these specific structures.

Mercury recommends assessing your homeowners insurance policy annually to ensure you’re getting adequate coverage. Get in touch with us today to go over your policy.

Dwelling Coverage Limits and Deductibles

Dwelling coverage is typically subject to limits and deductibles. Here’s a quick review of what each term means:

• Limit — The maximum amount your insurer will pay toward a covered loss.
• Deductible — The amount you agree to pay out-of-pocket for damages before your insurer begins to pay.

You may be asking yourself: How much dwelling coverage do I need? The dwelling coverage limit should be based on the estimated cost of rebuilding your home. You can calculate this estimate by multiplying the square footage of your home by the local rebuild cost per square foot. If you’re looking for a more accurate assessment, talk with your insurance agent. They can help adjust your limit and deductible to fit your needs.

How to File a Claim

Filing a claim under your dwelling coverage can feel overwhelming, especially after experiencing damage to your home. But don’t worry — knowing what steps to take can make the process smoother and less stressful. Here’s what to do:

1. Take immediate action: As soon as you notice damage to your home, take steps to prevent further harm — e.g., turning off water to prevent flooding or securing a broken window to keep out the weather.
2. Document the damage: Grab your phone or camera and start taking pictures of the damage. Be thorough — capture different angles and include close-ups. If you have receipts, warranties, or other documentation for any damaged items, gather them because they’ll be helpful when you file your claim.
3. Contact your insurance provider: Once you’ve documented the damage, contact your insurance provider to report the incident. Many insurers have a specific claims line or online portal for this purpose. Provide them with all the details, including the date and cause of the damage and any documentation you’ve gathered.
4. Assessment and claim approval: After you’ve filed your claim, your insurance company will likely send an adjuster to review your documentation, inspect the damage, and estimate the repair costs. Once this assessment is complete, your insurer will determine whether the claim is approved and how much they’ll cover for the repairs.

The unexpected can happen at any time. You need reliable protection to ensure your property is covered when unforeseen events occur. Contact Mercury today for more information about dwelling coverage and how to get cheap homeowners insurance without compromising quality.