A dwelling insurance policy is provided to cover homes that are occupied by someone other than the owner, such as a tenant. A landlord policy typically includes dwelling coverage and liability coverage.
Important things that you need to know about Dwelling Insurance:
If you are purchasing a home or condominium as an investment to be rented out to others, you need to obtain a dwelling policy instead of a homeowner’s policy.
A dwelling policy provides coverage to the structure but does not provide personal contents coverage of the tenant or personal liability coverage for the tenant.
It is a best practice to require a tenant to have renter’s insurance. A renter’s policy would provide coverage for their personal contents as well as their personal liability.
Some dwelling policy exclusions may include, but are not limited to theft, weight of ice, snow, or sleet, accidental discharge, loss caused by birds, vermin, rodents, insects or domestic animals. Coverage can be added back for these items by endorsement or upgrading to a broader policy form.
A full replacement cost dwelling policy is available and will provide full replacement of the structure versus actual cash value.
Owners can add liability coverage to their primary homeowner’s policy and extend coverage to any other investment properties.