Dwelling Coverage
Definition
The portion of a homeowners policy (Coverage A) that covers the physical structure of your home, including attached structures like garages. Dwelling coverage pays to repair or rebuild your home if it is damaged by a covered peril. The coverage limit should reflect the full replacement cost of the structure, not the market value.
When This Matters
A fire destroys your kitchen and living room. Dwelling coverage pays the $85,000 cost to rebuild those rooms to their pre-loss condition.
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