A Dwelling Fire Insurance Policy is designed to protect residential properties from specific perils, primarily fire-related damages. It is commonly used for rental properties, vacation homes, vacant homes, or properties that don’t qualify for standard homeowners insurance. Unlike a homeowners policy, it typically does not cover personal belongings or liability (unless added as an endorsement).
Pursuant to your particular policy language, coverage provisions, and exclusions; dwelling fire policies can include coverage for:
Dwelling Coverage – Protects the structure of the home, including walls, roof, floors, and built-in appliances, from covered perils. Covered perils depend on the policy type but often include fire, lightning, windstorms, vandalism, and explosions.
Other Structures Coverage – Covers detached structures such as garages, sheds, and fences.
Loss of Rental Income / Additional Living Expense – Compensates for lost rental income if the home becomes uninhabitable due to a covered peril. Covers temporary housing and extra living costs if the homeowner occupies the home and it becomes uninhabitable due to a covered peril.
Personal Liability Coverage – Provides legal defense and financial protection if the property owner is held liable for injuries or property damage occurring on the premises.
Medical Payments to Others – Covers medical expenses if a guest or tenant is injured on the property, regardless of fault.
Types of Dwelling Fire Policies:
John owns a rental property insured under a DP-3 Dwelling Fire Policy, which provides comprehensive protection for the structure and loss of rental income. His tenant, Sarah, has renters insurance to cover her personal belongings.
One evening, Sarah forgets to turn off the stove, causing a kitchen fire that quickly spreads, damaging the cabinets, walls, and part of the ceiling. Fortunately, no one is injured, but the home suffers $50,000 in fire and smoke damage, making it uninhabitable for three months while repairs are completed.
How Dwelling Fire Insurance Helps:
John Reports the Claim to His Insurance Provider. Provides pictures, a fire department report, and repair estimates.
The insurer covers $50,000 for repairs to the kitchen, including cabinets, walls, and smoke damage. Sarah must vacate the property for three months. John receives $6,000 in lost rent ($2,000/month) from his insurance.
Sarah files a separate claim under her renters policy for damaged furniture and electronics.
Contact CastleWise to discuss Dwelling Fire insurance coverage.
