If your cabinets are damaged, do you know what part of your insurance policy they fall under?
Sometimes it can be hard to parse out what is covered under your dwelling coverage and what is covered under personal property coverage.
If you guessed the former, you win!
Your cabinets are covered by the dwelling coverage section of your homeowners insurance policy.
But what makes your cabinets part of your dwelling? Here’s everything you should know.
Why are your cabinets considered part of your dwelling?
The reason your cabinets are covered by your dwelling coverage is that they’re considered a part of the structure of your home. The same goes for any other part of your home that is considered a part of its structure, including your hardwood floors, countertops, and other structural items.
What’s the difference between contents and structure?
The difference between structural items and contents is pretty simple — the contents of your home are considered anything that you can carry away (without wrenching it out of the wall). Common personal belongings that are considered contents include appliances, artwork, electronics, clothing, etc.
Any element of your home that is considered part of its structure is covered under your homeowners insurance policy’s dwelling coverage against any of the covered perils. In addition to your cabinets, other parts of your home that are considered a part of its structure are your:
- Attached patios, porches, and garage
- In-ground pool
- Permanently-installed inside fixtures (flooring, bathroom apparatuses, and countertops)
- Appliances that are built into your home (hot water heater, furnaces, and sump pumps)
How much coverage do you need for your dwelling?
When purchasing the dwelling coverage portion of your home insurance policy, you need to keep a few factors in mind to make sure you have adequate coverage. For the most part, you need enough coverage to repair or rebuild if your home is damaged by a covered peril.
The coverage amount is (mostly) based on the market value of your home. Labor and materials costs can fluctuate over time, usually increasing according to inflation. That’s why it’s important to occasionally touch base with your insurance agent to make sure your coverage remains adequate.
When purchasing coverage, you need to pay attention to the type of policy you’re getting. Your homeowners dwelling coverage will either insure your home for its replacement value or its market value.
Dwelling replacement cost: If you have dwelling replacement cost included in your coverage, then if you have to rebuild your home, your insurance will pay the entire amount (even if it’s above your home’s actual cash value). More costly than market value coverage, replacement cost coverage is limited by your homeowners insurance policy maximum.
Dwelling market value cost: With dwelling market cost coverage, you only receive what your house is worth on the housing market if it needs to be rebuilt. If your home costs more than its market value to rebuild, you’re on the hook for the remainder. While not as costly as dwelling replacement cost coverage, it can end up costing you more in the long run if you have to rebuild your home.