Dwelling Policy


Dwelling Policies are issued for:

  • Owner or Tenant Occupied 1 – 4 family unit dwelling with no more than five roomers or boarders in total, including trailer homes, mobile/manufactured homes, or floating homes used exclusively for dwelling purposes at a fixed location
  • Vacant 1 – 4 family unit dwelling including trailer homes, mobile/manufactured homes, or floating homes under certain limited circumstances
  • Personal Property for Renters
  • Personal Property and Improvements, Alterations, and Additions for Condominium Unit Owners

The descriptions below are intended as an overview only. Please read the applicable section of the policy for complete terms, including definitions, conditions and exclusions. Click here to see a sample Dwelling Policy for policies effective July 1, 2017 or later.

For Dwelling Policies effective on or before June 30, 2017, click here to see a sample policy.

Perils

The FAIR Plan Dwelling Fire Policy is a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy.

Named Perils

  • Fire or Lightning
  • Internal Explosion
  • Smoke

Optional Perils (for an additional premium)

  • Extended Coverage (windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles and volcanic eruption)
  • Vandalism or Malicious Mischief

For more complete coverage for your property, consider purchasing a Difference in Conditions (DIC) policy, which supplements the FAIR Plan policy by covering most causes of loss (perils) not covered by the FAIR Plan policy. More information about DIC policies can be found here.

Coverages

Unless Dwelling Replacement Cost is selected, the Dwelling policy is an Actual Cash Value policy. The Actual Cash Value coverage offered under the Dwelling Policy is applied differently if you have a partial or a total loss. If you have a partial loss, Actual Cash Value coverage pays the cost to repair or replace the damaged part of the dwelling, minus a deduction for physical depreciation. If you have a total loss, Actual Cash Value coverage pays the fair market value of the dwelling, which is the amount a willing buyer would pay a willing seller for the dwelling (not including land) in its condition immediately before the loss. Whether you have a total loss or a partial loss, this coverage only pays for costs up to the limits specified in your policy.

Coverage A - Dwelling

Covers damage to the Dwelling caused by covered perils. Up to 10% of the limit of liability may be used to cover loss to Other Structures caused by covered perils, and up to 10% of the limit of liability may be used for loss of Fair Rental Value. In addition, the policy covers Debris Removal. Payments made for Other Structures, Fair Rental Value or Debris Removal reduces the amount available to repair/replace the damaged Dwelling.

Coverage B - Other Structures

Additional coverage may be purchased to cover structures set apart from the dwelling. This coverage supplements the 10% sub-limit afforded under Coverage A – Dwelling and will not reduce the amount available under the Coverage A limit of liability.

Coverage C - Personal Property

Covers contents usual to the occupancy of the insured dwelling on an actual cash value basis, which means the lower of the cost to repair or replace the damaged item, minus a deduction for physical depreciation. Up to 10% of the limit of liability for this coverage may be used for a covered loss to personal property while anywhere in the world. For renters and condominium unit owners, up to 10% of the limit of liability may be applied to covered loss to additions, improvements, and alterations. Payments made for additions, improvements, and alterations reduces the amount of monies available to repair/replace the damaged property.

Coverage D - Fair Rental Value

May be purchased in any amount up to 20% of the Coverage A – Dwelling limit of liability and will provide compensation for the fair rental value of the dwelling while it is not fit to live in due to a covered loss, whether owner or tenant occupied. This coverage supplements the 10% sub-limit afforded under Coverage A – Dwelling and will not reduce the amount available under the Coverage A – Dwelling limit of liability.

Dwelling Replacement Cost

Dwelling Replacement Cost pays to repair or replace the damaged or destroyed building with like or equivalent construction up to the policy’s Coverage A – Dwelling limit of liability. Dwellings that are 25 years old or less qualify for this coverage. Dwellings that are more than 25 years old qualify for this coverage if the roof has been replaced within the last 25 years. This coverage is not available for mobile/manufactured homes. Policies with Dwelling Replacement Cost coverage must include Inflation Guard coverage (see below), unless the combined limits of liability total $1,500,000.

Personal Property Replacement Cost

Personal Property Replacement Cost provides the full cost of repair or replacement (subject to certain limitations) of damaged or destroyed personal property without deduction for depreciation up to the policy’s limit of liability for Coverage C – Personal Property.

Ordinance or Law

Ordinance or Law may be purchased in any amount up to 10% of the Coverage A – Dwelling limit of liability and provides coverage for additional reconstruction costs after a covered loss to bring the dwelling up to required residential building code standards in effect at the time of rebuilding.

Debris Removal

Debris Removal may be purchased in any amount up to 5% of the combined Coverage A – Dwelling, Coverage B – Other Structures and Coverage C – Personal Property limits of liability and provides coverage for the reasonable expenses for removal of debris of covered property damaged by a covered loss. This coverage supplements the coverage afforded under Coverage A – Dwelling and will not reduce the amount available under the Coverage A – Dwelling limit of liability.

Inflation Guard

Inflation Guard increases the Limits of Liability for Coverage A – Dwelling and, if present, Ordinance or Law Coverage, at each renewal by a percentage determined by a third party vendor to reflect inflationary changes in the cost of construction. There is no cost for this coverage, but any increase in the amount of the Coverage A – Dwelling limit of liability or Ordinance or Law Coverage limit of liability will result in an increased premium. If it is determined that construction costs have not increased (or have decreased), there will be no change in the policy limits. The FAIR Plan does not guarantee the sufficiency or accuracy of any percentage increase applied, or of any coverage limits. Inflation Guard coverage is mandatory for policies with Dwelling Replacement Cost coverage unless the combined limits of liability total $1,500,000.

Plants, Shrubs and Trees

Plants, shrubs, and trees coverage is provided for up to $250 for any one plant, shrub, or tree including landscaping and debris removal expense.

Outdoor Radio and TV Equipment, Awnings and Signs

Coverage for Outdoor Radio and TV Equipment, Awnings and Signs is provided under the Coverage A – Dwelling or Coverage B – Other Structures limit of liability as applicable, excluding the peril of Windstorm or Hail. Coverage for Windstorm or Hail can be purchased in any amount desired for these items.

Improvements, Alterations and Additions

Condominium unit owners may purchase Improvements, Alterations, and Additions coverage in any amount to cover improvements, alterations and additions made to the described location. This coverage supplements the 10% sub-limit afforded under Coverage C – Contents and will not reduce the amount available under the Coverage C limit of liability.

Permitted Incidental Occupancy

When scheduled on the Declarations, coverage is provided for personal property usual to the occupancy of the dwelling for the purpose described.

Deductibles

Every Dwelling policy has a deductible to be applied once per covered loss. Deductibles available are: $100; $250; $500; $1,000; $2,500; $5,000; $7,500; and $10,000. The higher the deductible, the lower the premium will be.