If you ever heard the term â€śdwelling fireâ€ť and wondered what it means â€“ the most basic explanation is that itâ€™s an insurance policy for landlords who do not live in the property they own. If you are renting your home to others, you might want to learn more about the above mentioned policy. Even though judging by the name you may assume itâ€™s insurance against fire, it actually covers you against a number of other perils â€“ lightning, wind, hail, explosion, smoke, vandalism, etc. In most cases, a dwelling fire insurance policy covers the home itself, its contents (limited coverage), and liability.Â Itâ€™s different from a renters policy, which protects against a loss in a renterâ€™s personal property.
Dwelling fire insurance doesnâ€™t just cover the house but also some of the surrounding structures such as a shed, garage or fence. It will also cover repair or replacement of the landlordâ€™s furnishings and appliances, provided the damage resulted from a cause included in the policy. Another example of what gets covered by the dwelling fire insurance is the Fire Department Service Charge: if the fire department bills you for the emergency visit to your home, the policy will partially pay for it (usually up to $500).
If a bodily injury occurs to one of your tenants, your dwelling fire policy will protect you against a claim or a lawsuit, as long as there is no negligence on your part that was the direct cause of the injury. Medical payments for the treatment of the tenantâ€™s injury will also get covered even though there could be a limit per person applied.