(800) 253-1482Missouri Dwelling Coverage
Summary: As the biggest portion of your home insurance, dwelling coverage has a big responsibility. Understanding how to set the right policy limits and compare endorsements helps homeowners in Missouri save money while providing personalized protection. Estimated Read Time: 5 mins
Homeowners need a lot of protection but the main focus of your home insurance policy should be on just that—your home.
Dwelling coverage helps homeowners in Missouri cover their home’s structure from perils that otherwise may cause minor, major, and total losses.
Table of Contents:
- Dwelling Coverage Defined
- How Much Dwelling Coverage Do I Need?
- Types of Dwelling Coverage in Missouri
- What Is Increased Dwelling Coverage?
- What Does Dwelling Coverage Cover in Missouri?
- What Isn’t Covered by Coverage A - Dwelling
- How To Calculate Dwelling Coverage for Missouri Homes
- Get Quotes for Dwelling Coverage in Missouri
Each home insurance policy provides multiple coverages to homeowners, however, Coverage A - Dwelling makes up the largest portion of your protection, and sets the tone for how Missouri residents are protected.
Not only is dwelling coverage the largest part of your policy but the policy limits of the rest of your coverages are also based on how much dwelling protection your home receives.
Finding the right amount of coverage is important for protecting your home’s core structure as well as your personal property, liability coverage, and more.
Below, we’re breaking down everything you need to know about Coverage A - Dwelling.
Dwelling Coverage Defined
Dwelling coverage protects your home and is the biggest protection you’ll receive through a Missouri home insurance policy.
This includes your home’s foundation, walls, roof, doors, windows, floors, etc. from perils covered by your insurance policy.
In virtually every situation, residents of Missouri should maintain enough dwelling coverage to completely rebuild their homes after a peril causes a total loss.
How Much Dwelling Coverage Do I Need?
Dwelling insurance needs to cover a home after a total loss so that it may be rebuilt. It’s important not to confuse this amount with your home’s purchase price or market value.
For example, if you own a home in St. Louis purchased for $160,000 that is now worth $180,000 but would cost $200,000 to rebuild, if you only have coverage for the purchase or market value, you’ll be short after a total loss.
In other words, you would need at least $180,000 worth of dwelling coverage to pay the costs of reconstructing your home.
Keep in mind that inflation causes a rise in the cost of construction for labor and materials.
It’s important to review your dwelling coverage policy limits at least once per year to maintain enough protection.
Types of Dwelling Coverage in Missouri
Different properties need different forms of protection, including condos and rental homes, which is why there is more than one type of dwelling coverage available.
Furthermore, there are multiple home insurance policies. Here are the options homeowners in Missouri have available:
- Dwelling fire insurance is available for rentals as well as some condos and townhomes.
- HO-1, HO-2, HO-3, HO-5, and HO-8 home insurance policies all have different policy limits and perils they cover. In turn, the way your dwelling is protected will be affected by the policy you choose.
- HO-6 policies are also available and are the most popular option for condos and townhomes in Missouri.
Comparing your property and the policies available is important for pinpointing the right coverage for your needs.
What Is Increased Dwelling Coverage?
Increased dwelling coverage or extended dwelling coverage, are endorsements (riders) that can protect you from losses that go beyond your policy limits.
Missouri homeowners can increase their policy limits, however, there are still some losses that may require additional coverage.
It’s important to weigh the pros and cons of each, compare your protections and premiums, and shop around for the best option for your home.
What Does Dwelling Coverage Cover in Missouri?
Your dwelling coverage will protect your home from the perils the rest of your home insurance covers you for.
This includes perils, such as damage from windstorms, winter storm damage, damage from hail/falling objects, frozen pipes, lightning/fire damage, the weight of snow, sleet, or ice, damage from vandalism/theft, etc.
What Isn’t Covered by Coverage A - Dwelling
Just as Coverage A will protect you from the perils outlined in your policy, your home isn’t covered for things not defined.
Here are some exclusions dwelling coverage won’t cover with standard protection:
- Damage caused by wear and tear
- Earthquakes/earth movement
- Flooding
- Pests and infestations
- Sewer backup
- Utility lines
Fortunately, you do have additional options, as mentioned above with extended dwelling coverage or flood insurance.
How To Calculate Dwelling Coverage for Missouri Homes
Calculating how much dwelling coverage you need can be done in just a few steps by working with a licensed insurance agent.
Each company has its own method of determining policy limits, premiums, deductibles, etc., however, if you compare your options, you’ll find the right level of protection for your home:
Determine the Cost of Rebuilding Your Home and Property
Your first step is to figure out how much it costs to rebuild your home. Remember, you’ll need to factor in rising construction costs and prepare for a total loss, not simply look at your home’s sale price or market value.
Several factors go into calculating how much it costs to rebuild your home, including the building materials you’ll need, how old your home is, its size, unique features, the cost of labor in your area, etc.
When choosing your type of policy, you can determine whether or not you want actual cash value (ACV) coverage or replacement cost (RC) coverage.
To fully rebuild your home, it’s important to choose RC coverage. Otherwise, you’ll have to pay out of pocket to restore your home.
Set Standard Dwelling Coverage Policy Limits
Once you have an idea of how much rebuilding your home is going to cost, you can set the policy limits of your dwelling coverage.
This is when you want to consider your risks and the perils that may affect your home.
If you live in an area prone to weather-related perils, higher policy limits may be necessary.
Compare Endorsements
Finally, once you’ve looked at your dwelling’s policy limits, it’s also important to compare possible endorsements.
Riders are optional but can help you protect your home in a more complete, personalized way.
Supplemental coverages, such as flood insurance or umbrella insurance, are also important considerations when setting up your policy.
Always double-check policy exclusions and search for endorsements that may be available to help you cover such perils.
Get Quotes for Dwelling Coverage in Missouri
Dwelling coverage is an important part of your home insurance but where you shop matters.
Freedom Insurance Group helps homeowners throughout Missouri connect with top-rated carriers to save on trusted coverage.
Get a home insurance quote by talking with one of our agents today to save on coverage and find personalized protection.
