What Is Dwelling Fire Insurance and What Does It Cover?

Dwelling fire insurance is a specialized property insurance policy protecting residential buildings not occupied by their owners. It addresses unique risks for properties like rental homes, vacant houses, or seasonal residences. This coverage focuses primarily on the physical structure, distinct from comprehensive homeowners insurance.

Core Purpose and Coverage

Dwelling fire insurance protects the physical structure of properties not used as the owner’s primary residence. This includes rental properties, vacation homes, or houses temporarily vacant or undergoing renovations. The policy covers the dwelling and attached structures like garages, decks, and porches.

This insurance typically covers perils beyond fire and smoke damage. Common events include lightning strikes, windstorms, hail, explosions, vandalism, malicious mischief, and damage from vehicles or aircraft. Some policies extend to cover damage from falling objects or the weight of ice, snow, or sleet.

Some dwelling fire policies offer limited coverage for the landlord’s personal furnishings or appliances within the property. For rental properties, policies often include “loss of rental income” coverage, reimbursing the owner for lost rent if the property becomes uninhabitable due to a covered peril.

Key Exclusions

Dwelling fire insurance policies have specific limitations. Floods and earthquakes are generally excluded, requiring separate insurance. Damage from neglect, intentional acts, or normal wear and tear is also usually not covered.

Policies commonly exclude losses due to war, nuclear hazards, and government actions. Infestations by pests such as insects or rodents are typically excluded, as are damages arising from mold or continuous leaks.

Personal property belonging to tenants is not covered; tenants must insure their own belongings through renter’s insurance. Liability coverage for injuries on the property is often limited or not included, though it can sometimes be added as an endorsement.

Distinctions from Homeowners Insurance

Dwelling fire insurance differs significantly from standard homeowners insurance in scope and intended use. Homeowners insurance policies are designed for owner-occupied residences, offering broad protection for the dwelling, personal belongings, and personal liability. In contrast, dwelling fire policies are tailored for properties where the owner does not reside.

A key difference is coverage for personal property and liability. Homeowners policies typically include comprehensive coverage for the owner’s personal belongings and liability protection for injuries on the property. Dwelling fire policies generally do not cover tenant personal property and offer more limited, or optional, liability protection.

Homeowners insurance usually provides “open perils” coverage for the dwelling, covering all risks unless specifically excluded. Dwelling fire policies are often “named peril” policies, covering only specific risks listed. This means homeowners insurance provides a much broader range of protection for an owner-occupied home compared to a dwelling fire policy for a non-owner-occupied property.