Understanding the Types of Homeowner Insurance Policies for Your Dwelling | Department of Insurance, SC (2024)

FAQs

What are the three types of dwelling policies? ›

What are the different types of dwelling policies? Like homeowners insurance policies, dwelling policies come in different tiers of coverage. These include DP-1 (basic), DP-2 (broad) and DP-3 (special), with DP-3 providing the most coverage.

Dwelling coverage (often called Coverage A on a homeowners or condo insurance policy) is one part of your home insurance policy that covers your house, including an attached garage, countertops, flooring, and built-in appliances.

Along with your house, connected structures such as attached garages are often protected by dwelling coverage insurance. It differs from home insurance, which covers the surrounding land and detached buildings on the property around your home.

While dwelling insurance protects your home against covered perils, typically including fire, storm damage, falling objects, and water damage, it doesn't protect against certain hazards, such as flooding, which would require additional coverage.

Coverage C - Personal Property

This coverage provides protection for the contents of your home and other personal belongings owned by you and other family members who live with you. Additional amounts of insurance may be purchased. You may want to consider scheduling these items separately.

AI-generated answer. The correct answer is C. A duplex owned by a corporation is NOT eligible for Dwelling coverage. Dwelling coverage is a type of insurance that provides protection for the physical structure of a home or dwelling.

There are several factors that insurance companies look at to determine dwelling insurance rates, including: The cost to rebuild your home. The materials that make up your home, such as stone, stucco, brick and wood. The age of your home.

Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered.

Final answer: Personal property coverage is not included in the basic form dwelling policy.

What does increased dwelling coverage mean? ›

Also known as extended dwelling coverage or increased replacement cost, extended replacement cost may help repair or rebuild your home after a covered loss when the cost of materials and labor have increased in your area.

The biggest difference between DP3 and HO3 is the type of risk each covers. DP3 policies are most commonly for properties the owner rents to others. An HO3 policy is for owner-occupied homes. Notice, too, that some coverages are added by default, while others are optional.

Although there are many insurance policy types, some of the most common are life, health, homeowners, and auto. The right type of insurance for you will depend on your goals and financial situation. Consumer Financial Protection Bureau.

Just like homeowners insurance, there are several different types of dwelling fire policies. DP-1 is known as the basic form, DP-2 is known as the broad form and DP-3 is known as the special form. Each provides a significantly different level of coverage.

The biggest difference between DP3 and HO3 is the type of risk each covers. DP3 policies are most commonly for properties the owner rents to others. An HO3 policy is for owner-occupied homes. Notice, too, that some coverages are added by default, while others are optional.

Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.