I Thought My Home Insurance Policy Covered Theft!

Do you remember purchasing your home for the first time? Were you the homeowner who was looking for the most affordable policy? Well, homeowners policy can get a little tricky when you don’t know what to anticipate when shopping for the right coverage.

Today, there seems to be an increasingly large number of homeowners who decide to purchase a Dwelling Three Owner Occupied policy (DWG), rather than a Homeowners policy (HO), and sometimes homeowners purchase a DWG policy without even realizing it.

Whether homeowners blindly asked their agent for the cheapest coverage possible, or they decided to buy a DWG policy on their own, it may not the ideal option. Why? This is because the DWG policy was originally intended to provide insurance to tenants living in rental facilities, not to full-time homeowners, so the coverage is not the same.

How to Find a Homeowners Policy that is Right For You

Ask for the details! It’s important to ask your agent to go over the specific details of the various coverage plan options you have available. While a DWG policy may be more affordable, it doesn’t offer the same complete coverage a HO policy can, and this can break the bank down the road.

Three differences in coverage between a HO policy and DWG policy:

  1. In a DWG policy, there is no coverage for theft on your contents.
  2. In a DWG policy, you will not recover replacement cost on contents coverage.
  3. In a DWG policy, there is no water back up coverage.

Don’t Settle for a Cookie-Cutter Policy

here are some ways that you can lessen the cost of your HO policy. What it really comes down to is, again, talking to your insurance provider about what your needs are. Don’t settle for a cookie-cutter policy. You can exclude specific types of coverage from your HO policy that you don’t think are necessary, which can bring the price down to a point that you are more comfortable with.

The key is to remain realistic about your coverage needs – an extra $50 a month for theft or flood coverage can make a huge difference should either catastrophe take place.

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