The dwelling fire form(s) are used primarily to insure homes that don’t qualify, for one reason or another, for a homeowner policy. The most common use is to insure a home that is tenant occupied. If you own a home and are renting it out to a tenant, it will not qualify to be insured under the homeowner program as it is not owner occupied. The solution is the dwelling fire forms(s). I say forms as there are three available. Most policies issued are on the DP-3 form and so that is what this blog will cover.

What’s covered? The dwelling form is all about choices. The homeowner form automatically includes coverage for your house, your detached garage or other structures, you personal property, your loss of use of the home and liability for losses occurring on or off the premises. These things can also be covered with a dwelling policy but you must ask for the coverage as it is not automatic. The policy can insure:

• Your house (dwelling) which is typically covered using open perils (all events covered unless excluded) and includes anything permanently attached to the home (patio, carpeting, custom drapes, etc).

• Your other structures, which means things permanently attached to the land which are not part of the house…like a detached garage, a gazebo, a pool house, etc.

• Your stuff (personal property) which means your furniture, clothes, dishes, and your collection of National Geographic magazines. Personal property is covered for only those types of losses named in the policy. The DP-3 policy also does not cover the personal property of tenants, who require their own renter’s policy.

• Your loss of rents. Your tenant is not going to continue to pay rent if the house burns down. The policy can replace the lost rents.

• Your liability for loss on the premises

Remember however you must select the coverages you want. If you are the owner and the home is occupied by a tenant it is unlikely that you have any personal property on the premises so you would not need that coverage. If the garage is attached and there are no structures on the property other than the house you might not need other structures coverage. The liability for this property may be added here or, if you have a homeowner policy on your primary residence included in that policy.

This is just an outline of what is covered by the dwelling fire policy. For more information contact a PoliSeek licensed sales representative at 866-540-7335.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

As with all questions regarding coverage, it depends on the language of the policy. For most policy forms used in the U.S. however the answer would be yes and both. Typically your policy would provide coverage for anyone driving your car with your permission (I’m assuming you are the policy holder) and your friends policy provides coverage for use of a borrowed (“non-owned”) auto. That begs the question; if both provide coverage, which one pays? The mantra used to sort this out is that “coverage follows the vehicle” or “coverage on the vehicle is always primary”. That means that the policy naming the vehicle (yours) pays first. If, for some reason, it will not pay or the coverage is insufficient then the coverage naming the driver (your friend’s) will pay.

Example:
Your friend, while driving your car, is in an accident which is determined to be his fault. He causes injury to the other party of $20,000.00. Your policy would pay first. Your bodily injury liability limit per person is $15,000 which your carrier pays. Your friend also has auto insurance with higher limits (bigger numbers). His policy has a bodily injury liability limit per person of $50,000. It will pay the remaining $5,000.

If you still have questions concerning this issue, please feel free to contact PoliSeek at 866-540-7335.  One of our licensed representatives will be happy to assist you.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

Inflation Guard Coverage works by adding an additional annual percentage increase to the dwelling value of your home to cover the rising costs of building materials due to inflation. It will also increase the value of other structures on your property, the amount of coverage for your personal property and the amount of coverage available for loss of use. Inflation Guard Coverage is designed to eliminate problems due to a home being underinsured and to accommodate for the fluctuation in the cost of living.

For more information regarding Inflation Guard coverage, please contact a representative at www.poliseek.com.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.