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Dwelling Fire Insurance in Shoreview, MN

Residential properties are significant investments that must be financially protected even while not serving as your home. Specific risks and perils may affect residences regardless of your presence, meaning that rental properties, vacation homes, cabins and cottages should all be thoroughly accounted for while addressing your insurance needs. With this in mind, understanding, acquiring and maintaining adequate dwelling fire insurance may be an advisable loss control measure.

What Is Dwelling Fire Insurance?

When insuring residential properties, you should first understand that dwelling fire insurance is not the same as standard homeowners insurance. This common misconception could lead to inefficient spending and insufficient coverage.

Dwelling fire insurance typically helps you financially protect residences that do not serve as your primary home. This may include properties that are vacant or being rented to others.

By securing adequate policies and maintaining them through your regular premiums, you may retain access to critical funds and resources following covered incidents. Conversely, lacking coverage could leave you without the means to repair or rebuild your property or otherwise financially recover.

What Is the Difference Between Types of Dwelling Fire Policies?

Like many types of insurance, dwelling fire coverage comes in several forms. The appropriate choice for your situation may vary depending on your insurance needs, risk profile, preferences and budget. When acquiring or reassessing your policy, consider the following options:

  • DP-1—Also known as the basic form of dwelling fire insurance, this type of policy is often appropriate for vacant properties and names specific perils that are covered, usually including fires, lightning and internal explosions. Two commonly available endorsements for DP-1 policies may include the following:
    • Vandalism and malicious mischief (V&MM)
    • Extended coverage, which names additional perils, such as the following:
    • Hail
    • Windstorms
    • Riots and civil commotion
    • Damage caused by vehicles or aircraft
    • Smoke
  • DP-2—This type of dwelling fire insurance, also known as a broad form policy, also names specific covered perils but is typically more versatile while including coverage for those provided by DP-1 arrangements, in addition to the following:
    • V&MM
    • Extended coverage
    • Burglary
    • Weight of ice and snow
    • Freezing pipes
    • Electrical damage
    • Falling objects (e.g., trees)

This form of dwelling fire insurance may also compensate you for lost revenue if you rent out your property but are unable to collect income due to a covered incident.

  • DP-3—These policies, also known as special form policies, provide the most comprehensive dwelling fire coverage. Unlike DP-1 and DP-2 arrangements that name specific, covered perils, DP-3 conversely covers all hazards affecting the physical elements of your property unless expressly excluded in the language of your policy. The following may be common exclusions:
    • War
    • Some types of water damage
    • Neglect
    • Mold, rust, rot or other gradual losses
    • Earthquakes

Get the Right Coverage

Dwelling fire insurance can be a complicated subject and it’s critical to understand which type of policy may be appropriate for your situation. With this in mind, you should consult with qualified insurance professionals, such as the dedicated staff at Dean Olson Insurance Agency.

As a boutique insurance agency with a catalog of over 50 insurance carriers, our team is well-equipped with the resources and experience to help you analyze your coverage needs and procure optimal policies. Contact us today to get started.

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