Dwelling Fire Or Homeowners Insurance - How To Determine The Right Type Of
Policy
Determining if you need a dwelling fire policy or a homeowners insurance policy depends mainly on if you
consider the home you want to insure as your primary residence. A primary residence is defined as a
residence that you reside in for the majority of the year. For some insurance companies, this is as simple as
saying that it is the property that you live in for at least 6 months and a day. It is also assumed that your
primary home will contain most, if not all, of your personal possessions. A homeowners insurance policy
provides coverage for your personal property, as well as for the dwelling and even personal liability. There
are also other options of coverage that can be included in a homeowners policy to meet your personal
insurance needs.
So what if the home is not your primary residence, but it is rented out as an investment?
Let's start with the first one- investment property. Any investment property that you rent out should only
require coverage for the dwelling and liability. You don't need to insure your personal property since it is not
located at this building. However, if you have some personal items at the property you can add additional
coverage to a dwelling fire policy to cover it, but for the most part, a dwelling fire policy provides coverage for
the building itself and if available- liability. If additional insurance is necessary beyond the dwelling itself,
such as liability or even a small amount of personal property coverage you can have your agent add it to the
dwelling fire policy.
And what if the home USED to be your primary residence but it is now a rental property, but
it is in the middle of your policy term?
Your homeowners insurance may no longer be valid or certain coverages could no longer apply to the
property. You will need to contact your insurance agent and make them aware of the change in residency.
They will be able to assist you in switching from a homeowners insurance policy to a dwelling fire policy.
What If I Rent Out My Vacation Home Part Of The Year?
Some companies will require a dwelling fire policy if you rent the property out more than 3 months a year. In
this instance and if you keep personal items in the home while rented (furniture, appliances, etc) you may be
required to carry a dwelling policy with liability and then add on personal property coverage to cover your
personal items at the home. However, some insurance companies don't have restrictions and you may be able
to get a homeowners policy to cover the property. Give us a call or send us an email to get more clarity on
whether a dwelling fire or homeowners insurance policy is best to cover your vacation home.
Vacant Or Renovation
Do you have a vacant building that is not currently in use, or maybe you're trying to sell it? Do you have an
investment property that you're renovating and eventually plan on renting to tenants? If any of these
scenarios fit then you'll need insurance for what the insurance industry calls 'vacant property.' You might say
that if you're renovating the property there's someone on the premises, but the insurance company is looking
for permanent residency and unless there is someone who uses that property’s address as a residence then
they classify it as a vacant property. Sometimes you may have difficulty obtaining coverage for a vacant
dwelling, but a good insurance agent will be more than happy to help you find coverage for your vacant
property and make sure that it is covered properly to ensure that if a should a claim arise it would be paid
out.
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