It is easy for first-time homeowners to cut costs on their homeowners insurance policies, but it could mean losing a fortune in the long run



First-time homeowners are familiar with the terms "homeowners insurance" or "home insurance policy" but many have never heard of dwelling coverage. In the most basic homeowners insurance policies dwelling coverage is the first form of protection that can be purchased out of many. Because a home is such a large investment and because there are any number of instances that could require a homeowner to call upon his or her insurance company, it is important to understand just exactly how relevant dwelling coverage is to you.



The general explanation of dwelling coverage is that it is the section of your homeowners insurance policy that covers the house, attached structures, cost of building supplies, indoor and outdoor fixtures and equipment in the event that your home is directly damaged or lost in such perils as wind, hail, snow, lightening, fire, smoke or theft. Attached structures are defined as garages, carports and swimming pools. For a first-time homebuyer it may seem like dwelling coverage encompasses most foreseeable forms of damage and loss. But it is important to look closer and read the fine print.

For example, in some states in the U.S., dwelling coverage will cover damage or loss from such natural disasters as hurricanes and tornadoes, or unnatural occurrences as overflowed plumbing and vandalism. But if you happen to live in a region in the U.S. that is prone to these disasters, the dwelling coverage section of your homeowners insurance policy will only cover such occurrences if you specifically cite them and request (by signature) their coverage. You can always find such limitations of coverage and optional coverage on the declaration, extra policy, or endorsement pages of your homeowners insurance policy.

Though it would once again seem that dwelling coverage for natural disasters such as hurricanes and tornadoes is sufficient, the homebuyer must also consider damage or loss from floods, earthquakes or landslides.