The dwelling coverage of a home insurance policy contributes to the cost of rebuilding or replacing a home.
It also includes attached structures like a carport or garage as well as home fixtures like electrical wiring, plumbing, and air conditioning and heating systems that are permanently installed.
Personal property like clothing and furniture are not covered by dwelling coverage, nor are detached structures like a shed or pool house.
It may exclude losses caused by certain kinds of perils and is subject to deductibles and limits.
The market value or purchase price of a home is one of the many factors that insurance companies use to determine the level of coverage for a home.
In most cases, home insurance is designed to cover the cost of replacing your home without taking into account wear and tear.
