It’s a smart decision to opt for a dwelling fire policy for a rental or investment property. It overlaps with the terms and conditions of homeowners insurance but segues into particularities that make it unique.
What is Dwelling Fire Policy
Contrary to the name, it doesn’t only cover fire damage. From explosions to vandalism, lightning, windstorms, and other hazards, it covers a wide array of perils.
The major difference between the two is that this policy is for residents who don’t make the property their primary abode. Hence, this is the best settlement between landlords and tenants.
A dwelling fire policy is not a broad-form insurance that can cover any and all forms of physical and liability hazards. A standard home insurance offers all those securities but for a considerable compensation. Dwelling fire policy narrows down its coverage to specific requirements in the event of damage. This makes it reasonably affordable for most property owners.
Here’s more about this insurance policy and why you need one.
Establishments that Require Dwelling Fire Policy
As said above, this policy is best suited to places that are not your primary residence. This means that you shouldn’t be living in them all year long, which is why vacation homes fall under that category. Since you’re only occupying this house during summer vacations, winter break or Christmas holidays, you only need a dwelling fire policy.
If you bought a house 5 years ago and haven’t rented it out or lived in it, it’s most likely vacant. Unless you decide to move into it soon, you won’t need proper homeowner insurance for it. Dwelling fire policy is your best option.
Some families own several estates in different parts of the country to enjoy changing seasons. While Massachusetts experiences the best Fall weather, Miami can give you the true feeling of living in the Tropics. For your seasonal homes, you only need a dwelling fire policy to take effective security measures.
If you’ve moved out of your old home and only occasionally visit it now, it has been demoted to a secondary residence. You no longer have to pay for a complete property insurance package for it. It’s better to invest in a dwelling fire policy instead and insure your secondary home.
Regardless of your terms of rent, you need an insurance policy for your home. Be it a long-term arrangement or a weekly settlement, you need to make sure your tenants are offered an insured place. This is best to secure your place and ward off most unforeseen liabilities.
If you’re planning to rent out your property or buy a summer home in Florida, we’re an insurance company you can rely on.
We offer homeowners insurance to homeowners in Bradenton for all kinds of property insurance needs, including dwelling fire policy. Come to us if you want to insure your estate in the best way possible!