Coverage A of a homeowners policy, often known as dwelling insurance, pays for repairs to or new construction of a house destroyed by a specified risk, such as fire. If your house and any associated buildings, like a garage or porch, or any built-in appliances, like a water heater, are damaged, your insurance will pay for all the repairs.

What Does It Mean to Dwell?

The structure you call "home" is where you spend most of your time. All associated structures and permanently installed appliances are included in the term "dwelling" in your home's insurance policy. In the eyes of the insurance company, outbuildings like garages and sheds are just an extension of the main house.

However, since you likely aren't the sole owner of those buildings, they won't be protected by renters' coverage or a condominium policy. Living in a condo, you and the other residents share common areas.

Exactly What Does Homeowner's Insurance Pay for?

Check the declaration page of your policy to see what kind of coverage you have for your home, as this will vary from company to company and area to region. Standard homeowner's insurance policies often cover the following risks:

• Theft
• Vandalism
• Smoke and fire damage
• Lightning strikes
• Explosions
• Destructive hail
• Wind erosion
• The weight of snow, sleet, or ice can cause structural damage.
• Pipes bursting

Sheds and detached garages are the outbuildings often covered by standard homeowners insurance. On the other hand, tenants and condo owners probably won't have any protection against this, as the buildings themselves aren't their property.

What Does Homeowner's Insurance Not Pay For?

While most homeowners' policies cover a lot of ground, they often won't pay up if your home is damaged by flood, earthquake, sinkhole, or backed-up sewage. They also won't pay for repairs since you neglected to fix an ongoing issue, like dry rot.

Your home's insurance can cover some of these risks, but only if you purchase a rider. Finally, your foundation may be covered in the event of an explosion, but your insurance may not extend to fractures caused by settling.

Your home insurance policy will include deductibles and coverage restrictions, and any exclusions that may apply. If your home has $1,000 worth of smoke damage because your chimney flue was closed, but your dwelling coverage has a $1,000 deductible, your insurance company will only pay you $500.

What Home Insurance Do I Need?

Your house and any outbuildings linked to it should be adequately protected in the event of a total loss due to a covered risk. Do not assume that this number equals either the price you paid or the current market worth of your house. Several factors affect how much it would cost to replace your home.

• Local Building Costs
• The size of your house in square feet
• What sets you apart from the competition:
• Architectural style

If you want to know how much dwelling coverage you should have on your homeowner's insurance policy, an appraisal can help. If your home's insurance policy has an Insurance Appraisal Clause, your insurance company may send an appraiser to your house to examine it. However, you also have the option of hiring an independent appraiser.

How Does HO-6 Household Insurance Work?

Like a standard homeowners policy, HO-6 coverage protects the building's owner in the event of a loss. It protects your furniture, television, and clothing just like any other standard homeowner's policy.

Because most condo owners do not own all of the auxiliary structures adjacent to their building, the dwelling part of a condo insurance policy is different from a standard policy. The additional coverage you may need depends on whether two types of coverage your condo association's master insurance policy provides.

How Much Condominium Dwelling Coverage Do You Require?

Condominium insurance differs from standard homeowner's insurance, yet it is still a good idea. Your homeowners' association should carry two forms of property insurance. Your condo association's building insurance policy, known as a "bare walls in" policy, will pay to replace or repair your unit's skeleton in the case of a major disaster.

HO6 insurance, also known as habitation coverage, will reimburse you for the cost of rebuilding or repairing the interior of your condo, including the flooring, walls, cabinets, and bathroom fixtures like the bathtub and shower.