WHAT IS DWELLING FIRE POLICY INSURANCE?
Dwelling Fire Insurance protects a home against the perils specifically named in the policy. Many common causes of damage, such as fire, hail, and lightning, are usually listed as covered “named peril” in a Dwelling Fire Policy. If something other than the named peril causes damage to the home, the policy does not cover the loss. It is important to know that Dwelling Fire Insurance is not broad form coverage, as a HO3 Homeowner Policy. The HO3 is all risk coverage unless specific exclusions are listed. Dwelling Fire Policy Forms Two and Three provide coverage on a Replacement Cost basis in the event of a loss. The DWG-1 is on an actual cash value basis in the event of a loss. This means that you will be paid for the actual cash value of your home and other structures that are destroyed or damaged due to a covered loss.
