This week we will be continuing our series of insurance articles looking at some of the more obscure coverage you might see on any insurance quote provided by the big insurance companies. We’ll be looking at extended dwelling coverage, an option provided by many of the A-rated insurance companies we work with such as: Safeco, Travelers, Metlife, and Encompass.
Extended dwelling coverage protects your home by increasing your dwelling up to a percentage level indicated in the homeowners insurance quote you receive. What this means more specifically is this: Imagine you live in the DFW area, for example in the city of McKinney. A Hurricane comes off the coast and marches through the greater Dallas Fort Worth area, causing huge losses on many homes in many of the cities in the metroplex: Dallas, Fort Worth, Addison, Plano, Frisco, Keller, Southlake, all are hit by this hurricane. Your home in McKinney isn’t the only one that has suffered large losses, and because of this massive damage, the price for building materials has gone up 20%. This 20% increase in building materials has increased the cost it will take to rebuild your home, and it is now more expensive to rebuild then your dwelling coverage limit – you now have to pay the remainder out of pocket.
With extended dwelling coverage, you have extra insurance on your dwelling – covering you in case of a scenario like this. In our aforementioned situation, if you had extended dwelling coverage, it would kick in after your dwelling limit was maxed out, you wouldn’t have to pay any money out of pocket.
If you’re looking for a local agent to endorse extended dwelling coverage on your home, you can find us on
Facebook, or email us at
contact@minsuranceagent.com. If you’re ready for a free insurance quote, you can submit your information on our home page, or call us at
214-733-8400.
