Do I Need Insurance For My Roof?
Your condo policy and homeowners insurance company are designed to help protect you in the event of a natural weather disaster such as a hurricane, tropical system, tornado, hail storm, lightning, wildfire, and other covered perils for your primary residence.
A dwelling fire policy was created for someone that does not live in a property as their primary residence. If you need to insure a rental or investment property, a dwelling fire policy is a less expensive alternative to a landlord or homeowners policy. However, do not be misled, “dwelling fire insurance” covers a little more than just fire. Though this policy is more affordable it is not for everyone as the coverage is basic and not as robust as the alternative.
The basic Texas Dwelling Fire Form 1 (TDP-1) covers Fire, Lightning, Explosion, Windstorm, hurricane, Hail. Claims under a Texas DP-1 dwelling fire policy are often settled on an actual cash value (ACV) basis by default instead of reconstruction cost value. ACV is replacement cost minus depreciation.
There are two additional forms available with Dwelling Fire coverage that can add supplement coverages such as; Vandalism and malicious mischief, Extended coverage, which includes damages due to the following, Hail or windstorm, Other explosions, Riot or civil commotion, Aircraft or vehicles Smoke, Volcanic eruptions. These coverages align with a Texas dwelling Fire Form 2 or (TDP-2) most often.
The third Dwelling Fire policy option is a Texas Form 3 (TDP3) which can typically include other options such as coverage for Weight of ice and snow, Glass breakage Accidental discharge or overflow of water or steam, Falling objects (such as trees), Freezing of pipes, Electrical damage, Collapse, as long as the building was not vacant for 30 or more days before a loss.
There is very limited or no coverage for water unless caused by a covered direct physical loss like the roof first being damaged by storm and then water leaking in through the newly created opening in the roof. Some insurance carriers now offer an endorsement for replacement cost coverage, water back up, sudden, and accidental discharge from pipes, privacy invasion and wrongful eviction, and premises liability.
A dwelling fire policy also may be beneficial for Coastal property, Home under renovations, Vacant house, Vacation, Seasonal or Secondary homes and Rental properties of all kinds (long-term, short term weekly, monthly, or seasonally), Older homes, or if you pay off your home loan.
Most often your bank or mortgage company requires you have traditional broad homeowners policy insurance in place as a condition of your loan, Lenders require insurance to protect both the bank, and you the client, in case of a catastrophic events. Even if you pay off your mortgage, insurance will continue to guard your investment. Without insurance, the value of the property would be in jeopardy. Perhaps a lower cost Dwelling Fire policy makes more sense for your pocket book?
For some clients, a dwelling fire policy is preferred alternative to a more robust landlord insurance policy. As long as you understand the policies cover minimum basics. The dwelling fire policy is short and “easy” to read what is coverage and what is excluded. If you read the policy it simply states the covered perils.
Ask your local independent insurance agent to help navigate your options as coverage varies by insurance company. Start your quote now! You can save up 25% bundling auto and home.
Descriptions of insurance products are meant to offer general ideas only, are necessarily brief, and are subject to policy provisions, limits, deductibles, exclusions, and conditions that can only be expressed in the policy itself. In the event of a conflict, the terms and conditions of your policy prevail. This information is provided solely as an insurance risk management tool.
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