Dwelling Coverage is the heart of an HO-3 policy. It protects the physical structure of your home, including attached garages and built-in appliances, against ‘Open Perils’. It is crucial that your Coverage A limit reflects the actual cost to rebuild your home from scratch, not its current real estate market value. If this limit is too low, you could face a significant ‘coinsurance penalty’ or be unable to fully restore your property after a total loss fire or storm.
Dwelling Coverage
« Back to Glossary Index