Home Insurance Dwelling Coverage A: What’s covered?

Dwelling coverage (also referred to as “coverage A”) is the amount allocated in your homeowners insurance policy for the damage to the physical structure of the home.

Does dwelling coverage include everything in your house? What about structures that are attached to your home? And what is the amount of dwelling coverage you need?

To answer these questions and understand precisely what is meant by dwelling coverage in your home insurance policy, all the information you need is carefully laid out in this guide. Keep reading!

What Does Dwelling Coverage Mean?

Dwelling coverage refers to the part of your home insurance policy that reimburses the cost of rebuilding and repairment of the physical structure of your home.

In other words, the parts of your home in which you live – including the walls, roof, flooring, built-in water heater, etc. – are covered by dwelling insurance.

On the other hand, in the home insurance lingo, a peril is anything that can damage your dwelling. Some examples of covered home insurance perils are hail, fire, etc. (more on them in a second).

In the event of damage caused by a covered peril to the insured property, you can file a claim and receive the funds to make the necessary repairs and restore your house to the insured condition.

coverage A standard homeowners insurance

What is Covered by Dwelling Insurance?

The following are the most common perils your dwelling insurance will cover damage from:

  • Vandalism
  • Theft damage
  • Falling objects
  • Wind
  • Hail
  • Snow
  • Fire
  • Lightning

Dwelling Coverage Limits

The first thing you need to consider toward your dwelling coverage amount is the policy limits.

Namely, your dwelling coverage limit is the maximum amount that your insurance may cover in the case of a loss. You should base the limit on the total cost of rebuilding your home. Each carrier will calculate its own reconstruction cost.

It’s crucial to mention here that this is a different amount to the market value (also known as the Actual Cash Value – ACV) for which you can sell your home and the purchase price of it. These two also include the land price, which you don’t need for your home insurance policy.


When determining how much dwelling coverage you need, you should take into account the deductible. This part of your policy is not covered by the insurance company.

The formula is simple:

The less you pay for deductibles, the more you’ll pay monthly.

It’s up to you to decide which option works better for you, but know that you have to cover your deductible before receiving a payout.

What Else Does Your Homeowners Insurance Policy Cover?

Okay, so policies cover the actual structure in which you live, but what about the protection of other parts of your home? And do you get any personal benefits from it?

Homeowners Insurance Coverage

Most commonly, your standard homeowners insurance will contain the following structures in addition to Coverage A:

  • Coverage B – A separate structure that isn’t included in the physical structure of your home, such as a detached garage, fence, gazebo, shed, etc. Actually, damage to garage doors and roofs is one of the most common claims, in our experience!
  • Coverage C – This is your personal property coverage. It accounts for items that are not necessarily parts of the dwelling area, but your personal belongings – such as appliances, furniture, dishes, etc.
  • Coverage D – In the event that an emergency happens and your home is uninhabitable for a period, the loss of use coverage pays for living expenses during that time, e.g., transportation and hotel.
  • Coverage E – Personal liability insurance covers the cost if you are held responsible for damages to someone else. It can also be used to reimburse your defense in court. For some more serious lawsuits you are found responsible for, you’ll need an umbrella policy.
  • Coverage F -The medical payments coverages can be used in the event that another person has been injured on your insured property.

Water Damage

By default, your insurance policy will not cover damage caused by flooding and water.

However, policies may be upgraded so that they include additional coverage like drainage and sewer backups.

If you need to extend your policy for water protection or reassess the conditions of your existing policy, we can help you with that.

Auto Insurance

While your homeowners insurance may cover some outside structures of your home (such as a garage), no home insurance covers your vehicle that is parked in it and is thus equally vulnerable to any perils that may occur.

Hence, you might want to consider purchasing auto insurance cover (also known as car insurance) in addition to your standard policy.

what is dwelling coverage

Get Your Homeowners Insurance Policy & Dwelling Coverage Quote

Are you in search of a reliable insurance company and home insurance quotes?

On our website, you can get the latest information about homeowners insurance policies and dwelling protection.

If you tell us some basic info about you, such as your ZIP code and address, we can generate the best offers for your home insurance.

Insurance quote widget here

We’ll ask you for your data only once, and there are no obligations on your side – you decide what’s the best deal for you and whether you want to purchase any.

With years of experience in the business, the carriers we chose are the most reputable insurance companies in the whole state, no matter your ZIP code.

Safeco, Nationwide, and some of our other partner carriers offer unparalleled home insurance policies, which is why we decided to trust them.

Should you have any questions, one of the expert Geeks will gladly assist you.

Dwelling Coverage: FAQ

Q: How do you calculate the dwelling insurance amount?

A: How much dwelling coverage you’ll need depends on the value of your house. Bear in mind that it does not refer to the market value when you purchased it, but its state now and how much it would cost to rebuild it. Generally, the amount of your dwelling insurance depends on the average cost per square foot, the cost of labor and construction, size, as well as the age when the house was built.

Q: Is dwelling coverage the same as replacement cost?

A: The replacement cost value (RCV) is the amount that it would take to rebuild your home using materials of the same quality. So, it’s the wisest to base your dwelling insurance on the RCV to make sure you are properly insured.

Q: Why is my dwelling coverage so high?

A: Depending on the assessment of the current value of your property, your dwelling coverage premium (as well as the policy) can drive up due to a number of factors. One of them is a risk of damage; then, there are additional factors such as whether a claim has already been filed and how many rooms you have. But the dwelling coverage is nowhere near as high as the expenses could be if you don’t have your insurance to cover them!

Final Thoughts

Your house is definitely one of your most valuable assets.

Having a homeowners insurance policy that provides dwelling coverage can be the secure pathway to your home protection.

Preparedness is smart, and it’s important to ensure that you are protecting your personal property with the right insurance company.

At Insurance Geek, our mission is to find you the most affordable insurance policies with the dwelling coverage portion that you need.