Is your dwelling properly insured?
As a homeowner, it’s essential to have proper insurance coverage to protect your dwelling in the event of unexpected damages, such as from natural disasters, theft, or accidents. One critical component of your insurance coverage is dwelling coverage, which protects the physical structure of your home. Here’s what you need to know about proper insurance on the structural properties of your home.
Dwelling coverage is an essential component of a homeowner’s insurance policy. It covers the cost to repair or rebuild the
physical structure of your home, including the walls, roof, floors, and foundation, in the event of damage from a covered peril. Covered perils may include things like fire, hail, windstorm, and theft.
The amount of dwelling coverage you need will depend on several factors, such as the size and location of your home, local construction costs, and the materials use to build your home. It’s crucial to work with your insurance provider to determine the appropriate amount of coverage needed to fully protect your home. It’s also important to review your coverage periodically to ensure that it’s keeping up with any changes to your home’s value or construction costs. For example, if you’ve made significant renovations or additions to your home, you may need to increase your dwelling coverage to reflect these changes. It is recommended that you have a minimum of 80% of the replacement value 
of your home, such as a house with a replacement value of $120,000 x .8 = $96,000 would be the minimum amount you’d want to insure the home at. I have also seen some homes insured for 120%, but that is usually only available when you build on the same lot and make a similar build to the home you lost by using like materials and keeping the similar shape.
It’s important to note that dwelling coverage does not cover damage caused by certain events, such as floods, earthquakes, and sewer backups. For coverage against these types of perils, you may need to purchase additional insurance policies, such as flood insurance or earthquake insurance. Additionally, house coverage does not cover damage caused by wear and tear or neglect. It’s important to properly maintain your home and make any necessary repairs to prevent damage from occurring.
Having proper insurance on dwelling coverage is crucial to protecting your home and investment. It’s important to work with your insurance provider to determine the appropriate amount of coverage needed and to review your coverage periodically to ensure it is keeping up with any changes to your home’s value or construction costs.
What is dwelling coverage? What Is Dwelling Coverage? | American Family Insurance. (n.d.). Retrieved April 7, 2023, from https://www.amfam.com/insurance/home/
Minnesota Homebuyer’s connection (2022) Minnesota Homebuyer’s Connection. Available at: https://mnhomebuyersconnection.com/ (Accessed: March 24, 2023).
