Why should you purchase a dwelling policy instead of homeowners policy?

The terminology of dwelling versus homeowner insurance can be techincal or something else. They both cover a home.A homeowner insurance policy covers people who own a home and live in it. It covers the home, other structures (if any) personal property and loss of use. The personal property is usually a percentage of the home 50-75% of the home. Loss of use can be a dollar amount, percentage of the home amount or an unlimited dollar amount for a certain period of time.A dwelling policy, generally known as a rental dwelling policy has the dwelling amount, a specific amount of personal property and loss of use is more limited. The personal property is also usually limited to an actual cash value for a dwelling policy while a homeowner policy is on a replacement cost basis. You should talk to your insurance agent to fully understand the differance betweeen the policies and what is best for your situation.