A Word From Our Sponsor On Dwelling Insurance Coverage

If your insured is in need of dwelling insurance there are affordable options available. This part of your insured’s home insurance that would cover what it would cost to either rebuild, if there was a total loss, or repair if there was damage from a covered peril. The perils covered are usually the very basic exposures like fire, high winds, hail storms, or if a dwelling was struck by lightning.
When working with your insured to determine the amount of dwelling insurance they need be sure they are not using the market value of their home. This is not an accurate amount and if there were to be a loss they could be penalized. The limit of liability should be for the structure only and not include anything below ground or land value. The limit of liability for the structure should be only for the structure.
Your insured will also have the option of insuring their dwelling for replacement cost or actual cash value. In most cases the replacement cost value will be the better choice. This will account for the additional cost it would take to replace the structure at today’s costs. If the structure is very old the actual cash value could be significantly lower. Dwelling insurance will not cover anything of your insured’s beyond the structure. If your insured should want personal property coverage that would come under a homeowners insurance policy.

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