Imagine this: dark clouds roll in, the wind picks up, and within minutes, a hailstorm pounds your neighbourhood. You watch helplessly as ice pelts your roof. Your shingles crack, eavestroughs bend, and water starts creeping in through the ceiling. When the storm passes, one question remains: will your home insurance cover the damage?
That’s where dwelling coverage comes in.
For most Canadians, a home is their biggest investment and their family’s safe haven. Yet surprisingly few homeowners know exactly which parts of the structure are protected under their policy, and which aren’t.
Understanding Dwelling Coverage (Coverage A) is the key to avoiding costly surprises and ensuring your home can be rebuilt after disaster strikes. In this guide, we’ll break down what dwelling building coverage really includes, the specific perils it protects you from, and the common exclusions that might leave gaps in your protection.
What Is Dwelling Coverage (Coverage A)?
Dwelling Coverage (Coverage A) is the portion of your home insurance policy that pays to repair or rebuild the physical structure of your home if it is damaged by a covered peril. It forms the foundation of your protection, safeguarding the “bones” of your property, against risks like fire, wind, or hail.
Depending on your policy, your coverage is typically based on either:
- Replacement Cost: The amount it would cost to rebuild your home today using similar materials and craftsmanship, without deducting for age or wear.
- Actual Cash Value: The depreciated value of your home’s structure at the time of the loss (rebuilding cost minus depreciation).
Expert Note: This coverage ensures you aren’t left paying for major structural repairs out-of-pocket. At ONA, we generally recommend aiming for Replacement Cost coverage to ensure your home can be fully restored to its pre-disaster condition.
What Structures Are Included Under Dwelling Building Coverage?
Dwelling building coverage focuses strictly on the physical structure of your home, not your belongings or detached structures.
Specifically, Coverage A typically includes:
- Structural Elements: Exterior and interior walls, roof, foundation, and floors.
- Built-in Systems: Plumbing, electrical wiring, heating, and central air conditioning systems.
- Attached Structures: Garages, carports, or permanent decks and porches connected to the house.
- Fixtures & Appliances: Built-in cabinets, countertops, and appliances like built-in ovens or water heaters.
It is critical to distinguish what falls outside of this coverage:
- Personal Belongings: Furniture, electronics, and clothing fall under Coverage C.
- Detached Structures: Sheds, fences, or detached garages usually fall under Coverage B.
If you are unsure which parts of your property fall under which coverage type, an ONA broker can review your policy to help you spot any potential gaps.
Why Dwelling Coverage Matters for Homeowners
Your home is where your family feels safe and where your future is anchored. Dwelling coverage provides financial protection against unexpected disasters, helping maintain your home’s value and your family’s security.
If your home suffers structural damage from a covered peril, dwelling coverage ensures you can rebuild without bearing the full cost yourself. It also helps prevent secondary financial strain, such as mortgage complications or property devaluation after major damage.
Common Perils Covered by Dwelling Coverage
Named Perils vs. Open Perils Policies
To understand your protection, you must first know how your policy defines risk. Home insurance policies generally fall into two categories:
- Named Perils Policies: Cover only the specific risks explicitly listed in your policy.
- Open Perils (All-Risk) Policies: Cover any cause of loss unless it is specifically excluded.
Tip: Always review your policy to confirm which type you have, as this significantly impacts your claim eligibility.
Key Perils Typically Covered
While details vary by insurer and region, most dwelling building coverage protects against the following standard risks:
- Fire and Smoke: Damage from electrical faults, wildfires, or kitchen mishaps.
- Windstorms and Hail: Common in Ontario, these are frequent causes of roof and siding damage.
- Lightning Strikes: Direct damage to the structure or electrical surges.
- Explosions: Caused by gas leaks or mechanical malfunctions.
- Vandalism or Theft: Damage to the structure itself (e.g., broken doors or windows) during a break-in.
- Falling Objects: For example, a tree branch crashing through your roof during a storm.
- Weight of Ice, Snow, or Sleet: Structural strain or roof collapse caused by heavy winter accumulation.
Local Insight: In regions like Ottawa, wind and hail damage are among the most common claims we see. Ensure your policy’s limits are sufficient to cover current local construction costs.
Typical Exclusions in Dwelling Coverage
Why Exclusions Exist and How to Spot Them
Every insurance policy contains exclusions. They exist to prevent misuse and keep premiums affordable. However, these exclusions are often misunderstood.
Some homeowners assume that “home insurance covers everything,” only to find out that gradual damage or neglect isn’t included.
Understanding what is not covered is just as important as knowing what is.
Common Exclusions You Should Know
The following are standard exclusions that often catch homeowners by surprise:
- Wear and Tear: Natural aging, such as peeling paint or curling roof shingles.
- Neglect: Damage resulting from a lack of maintenance (e.g., a long-term leak leading to rot).
- Earth Movement: Damage from settling foundations, earthquakes, or sinkholes (unless added by endorsement).
- Specific Water Damage: Standard policies often exclude floods, sewer backups, or gradual seepage.
- Pest Infestations: Damage caused by termites, rodents, or carpenter ants is considered a maintenance issue.
- Intentional Damage: Any damage caused willfully by the insured.
Broker Tip: Many of these exclusions, specifically Sewer Backup or Overland Water, can be mitigated with endorsements. Ask your broker about adding these specific coverages to close the gap.
Misunderstood Exclusions and How to Avoid Surprises
Water damage is one of the most misunderstood areas of dwelling coverage. Many homeowners assume any water-related incident is covered, but that’s rarely the case.
- Covered: Burst pipes from sudden freezing (provided reasonable care was taken to heat the home).
- Excluded: Seepage through a basement wall or overflow from a sump pump (unless you have specific endorsements).
The best defense against coverage surprises is an annual policy review. As your home ages or undergoes renovations, your insurance needs evolve.
Take the time each year to:
- Review Coverage A Limits: Ensure they match current rebuilding costs, not just market value.
- Update Your Policy: If you’ve added a deck, finished a basement, or replaced a roof, let us know.
- Check Endorsements: Ask about filling gaps for water or earthquake damage.
Protect Your Home’s Structure with Confidence
Dwelling coverage is the backbone of your home insurance policy, it’s what helps you rebuild after disaster strikes. It covers your home’s structure from perils like fire, wind, and hail, but it won’t protect against wear and tear, neglect, or excluded water damage.
Knowing what’s covered (and what’s not) allows you to protect your investment fully and avoid costly surprises down the line.
Condo owners should also review their condo insurance regularly to ensure it complements their building’s master policy and protects their unit fully.
Similarly, if you own a cottage or seasonal home, the right insurance coverage is just as important. These properties often face unique risks, especially during the off season, making comprehensive cottage and seasonal home coverage a necessity.
Whether it’s your main residence, condo, or getaway property, make sure every structure you love is properly protected.
Contact your ONA broker for a Coverage A review or to get a free quote.
