Homeowners Insurance vs. Dwelling Insurance: What’s The Difference?

Can you differentiate between Homeowners Insurance and Dwelling Policy?

Buying a home is an expensive investment. Therefore, having insurance is a prudent method of protecting your property. Not only do the mortgage companies require coverage, but you will also get peace of mind in case of a disaster. With the two central insurance policies available for homes and homeowners, you need to understand their difference to find one suitable for your needs.

What Exactly Is Home Insurance; Dwelling Insurance?

Homeowners Policy is more comprehensive than the dwelling coverage. While Dwelling Insurance only covers the physical structure of your home, the Homeowners Insurance covers everything. These include the actual house and the property inside, such as clothing, furniture, and collectibles.

What Qualifies a Home for A Dwelling Coverage?

Home qualifies for a dwelling policy if you are not living in the property. When the house is not your primary residence, then you are likely to get Dwelling Cover. An investment property such as a rental home doesn’t need the Homeowners Coverage.

However, if you plan to live in the property, Homeowners policy insurance is the way to go. The reason is that when a catastrophe strikes, it will protect your family valuables and items in the house. Besides, you can get more coverage with Homeowners Insurance.

The Difference in Coverage Limits and Options

Insurance policies come with different package limits varying from one company to another. You should, therefore, understand the specifics of different covers before purchasing. Dwelling insurance covers vacant or rental properties. They do not offer additional coverage, which makes them more affordable and appealing.

However, Homeowners Policy comes with extensive coverage for the property, contents, theft, liability, replacement and, water backup coverage. 


While both insurance policies cover an entire premise, Homeowners Policy additionally insures units separated from the primary building such as a workout shed. Many Homeowners policies also offer you the option to add other items like swimming pools to the coverage. The good news is, they both cover plumbing, electrical and heating systems in the house.


In an insurance policy, perils refer to the causes of loss. The Dwelling Insurance and Homeowners Cover differ in the risks they cover. The Dwelling Insurance offers protection to named perils in their contract, with other disasters like earthquakes and floods exempted from the coverage. However, the Homeowners Policy covers all risks to protect your entire property plus belongings. Aside from covering your property from fires and unexpected weather, the Homeowners Insurance also protects against vandalism and theft.

Final Thoughts

Insurance coverage is vital to secure your premises and be at peace. Ensure that you read the entire contract to understand the specific coverage of the different insurance policies. While the Dwelling coverage may be cheaper and easy to obtain, it lacks extensive coverage. However, Homeowners Policy is an excellent option with its various packages and flexibility. Choose your ideal insurance policy by considering your individual needs.

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