Dwelling coverage is designed to help you protect the structures on your property, including your house, condo, fences and garage. This blog is to help you gain a comprehensive understanding of dwelling insurance, how much you should get and why you should have it.
How much dwelling insurance should I have?
You should have enough to completely rebuild your home if needed. This will include three different levels of coverage.
- Actual Cash Value: the market value of your house, minus depreciation which may include aspects of your home such as your roof, plumbing or floorboards. This depreciation of value is why ACV likely won’t cover the entire cost to rebuild your home with new materials.
- Replacement Cost Value: the cost to rebuild your home at current market prices for labor and resources. This policy will have higher premiums than ACV, however you are likely to receive a higher reimbursement in case of rebuilding.
- Guaranteed Replacement Cost (GRC) / Extended Replacement Cost (ERC): very similar to the RCV, however, this policy covers the full replacement value and then some! This option is the most expensive, but it will offer the most protection
What does dwelling insurance cover?
In case of disaster, dwelling insurance will help you rebuild your home, garage, fences and any other structures on your property in case of:
- Fires – necessary for homeowners in Colorado
- Hail – necessary for homeowners in Colorado
- Falling objects – highly recommended for homeowners in Colorado
What it does not cover: floods, earthquakes, water back-up
- However, there are additional coverages are available for these (attach link)