What Does Dwelling Coverage Cover? Inclusions & Exclusions

Dwelling coverage is a fundamental component of a homeowner’s insurance policy, designed to protect the physical structure of a home. This coverage helps safeguard a significant financial investment by providing funds for repair or rebuilding if the property sustains damage from a covered event. It focuses specifically on the house itself, forming the primary layer of protection for the residence.

Scope of Dwelling Coverage

Dwelling coverage extends to the physical structure of the house, encompassing elements like the walls, roof, and foundation. It also includes built-in fixtures. These fixtures can include plumbing systems, electrical wiring, heating and cooling units, including cabinets, flooring, and bathroom fixtures.

This coverage also protects structures directly attached to the main dwelling. Examples of attached structures typically covered are garages, carports, decks, and patios that share a common foundation or are physically connected to the house. “Other structures” coverage is a separate part of a homeowner’s policy for detached buildings on the property, such as sheds, fences, or detached garages. The limit for other structures coverage is often a percentage, 10%, of the dwelling coverage.

Common Covered Perils

Dwelling coverage typically protects against perils that can damage the home’s structure. Covered perils include fire, smoke, lightning strikes, windstorms, or hail. Explosions, riots or civil commotion, and damage caused by aircraft or vehicles (not owned by the insured) are also covered.

Policies often cover damage from smoke, vandalism, and theft. Other common perils involve falling objects, the weight of ice, snow, or sleet, and accidental discharge or overflow of water or steam from plumbing or appliances. Damage from the sudden and accidental tearing apart, cracking, burning, or bulging of heating, cooling, or sprinkler systems is also frequently covered, as is freezing of these systems. Sudden and accidental damage from artificially generated electrical currents is also included.

Homeowners insurance policies are categorized as “named perils” or “open perils” (also known as “all-risk”). A named perils policy covers only specific listed events. Conversely, an open perils policy covers all causes of loss unless explicitly excluded. Most standard homeowners policies (HO-3) cover the dwelling on an open perils basis, while personal property may be covered on a named perils basis.

Typical Exclusions from Dwelling Coverage

While dwelling coverage is comprehensive, certain types of damage or events are generally not covered. Flood damage is almost universally excluded, requiring a separate flood insurance policy. Similarly, earthquake damage is typically excluded and necessitates a dedicated earthquake insurance policy.

Damage caused by ordinance or law, which refers to increased costs to comply with updated building codes after a covered loss, is often excluded unless an endorsement is added. Power failure originating off-premises is another common exclusion. Damage due to neglect, wear and tear, or a homeowner’s failure to maintain the property is also excluded, as these are considered preventable issues.

Losses caused by war or nuclear hazard are standard exclusions across insurance policies due to their catastrophic potential and uninsurable nature. Intentional loss, meaning damage caused deliberately by the insured, is likewise excluded. Water damage from sewer backup or sump pump overflow is frequently excluded but can often be covered through an additional endorsement. Mold, fungus, or rot are typically excluded if they result from long-term issues or neglect, though some policies might cover them if caused by a sudden and accidental covered peril. Finally, damage from pest infestations like insects, rodents, or other animals is generally not covered.