Why Dwelling Fire Insurance Is More Important Than You Think


Most people don’t like spending extra money, which means sometimes they skimp on insurance coverage. This may not seem like a big problem, but if you don’t have the right amount of insurance coverage, you’re running a huge risk.

One coverage option that you shouldn’t neglect is dwelling fire insurance. Here’s what you should know about this insurance policy.

What is Dwelling Fire Insurance?

Dwelling fire insurance is coverage designed to protect properties that are not owner occupied. It provides coverage for the home, garage, and other structures on the property like sheds if there is a fire.

How Much Danger Are You In Without This Coverage?

According to the National Fire Protection Association, there were 369,500 home fires in 2013 alone. These fires resulted in a whopping $6.8 billion in damages (and that number doesn’t account for indirect losses such as business interruption).

As you can see from the numbers, home fires, unfortunately, are relatively common and incredibly costly. If you own multiple properties and rent them out as part of your business, you could lose millions of dollars in investments and future business opportunities. Without the right insurance coverage, you could have serious trouble rebuilding your business or regaining your investment.

What Protection Does A Dwelling Fire Insurance Policy Provide?

Dwelling fire insurance policies are designed to protect the structure of the home as well as other structures on the property. It does not cover personal property inside the home.

If you are a landlord, it is essential to invest in dwelling fire insurance, but you should also require your tenants to carry a renters insurance policy that protects their belongings in the event of a fire.

Who Needs Dwelling Fire Insurance?

Dwelling fire insurance is particularly valuable for landlords because the properties they own represent not only a major investment, but in some cases, a major source of income.

When someone else loses their home, it can be devastating, but they still have a job. Without this coverage, landlords could lose their investment properties in addition to losing their job and main source of income.

Landlords should also invest in this insurance policy because they may have a greater risk of losing a property to a home fire. Even if the tenants are responsible, most tenants do not care for a home they are renting the way they would care for a home they own. They may be more likely to leave the stove on, ignore problems with wiring, or forget to tell the landlord about a clogged filter or vent. This can result in more risk for home fires.

If you are not a landlord, but you still own property that you don’t reside in (such as a vacation home) you should still check with your insurance agency and determine what kind of additional coverage you need.

Don’t risk losing your major investments or your source of regular income. Invest in dwelling fire insurance today.

To learn more about insurance coverage options, and dwelling fire insurance in particular, visit Heuer Insurance.