What’s the Difference Between Building Coverage and Dwelling Coverage in Flood Insurance?
- CATcoverage.com
- 34 minutes ago
- 3 min read
Flood insurance helps protect property from water damage caused by flooding. But when quoting policies, agents often ask: What’s the difference between building coverage and dwelling coverage?
While the terms sound alike, they apply to different types of properties. Knowing the difference helps agents quote the right policy—whether through the NFIP or private options like NCIP available on CATcoverage.com.
What Is Building Coverage?
Building coverage protects the structure of a property. It’s used for non-residential buildings, like offices, schools, or warehouses.
What Building Coverage May Include:
Foundation, walls, and staircases
Electrical and plumbing systems
Central air units and water heaters
Built-in appliances and cabinets
Detached garages (in some cases)
This type of coverage is often quoted using the General Property Form under the NFIP. For agents quoting private flood insurance, CATcoverage.com offers flexible options that may include broader coverage depending on the property.
What Is Dwelling Coverage?
Dwelling coverage is a type of building coverage—but it’s meant for residential homes. It’s used for single-family homes, condos, and small rental properties.
Dwelling Coverage Typically Applies To:
Owner-occupied homes
Condos not covered by an association
Residential buildings with up to four units
Under the NFIP, dwelling coverage is quoted using the Dwelling Form. Agents quoting NCIP private flood insurance through CATcoverage.com can offer residential clients options that may better fit their needs.
Key Differences at a Glance
Feature | Building Coverage | Dwelling Coverage |
Property Type | Commercial or non-residential | Residential homes and condos |
NFIP Form | General Property Form | Dwelling Form |
NCIP Form | Commercial Quote Online | Personal (Residential) Quote Online |
Coverage Limits (NFIP) | Up to $500,000 | Up to $250,000 |
Coverage Limits (NCIP) | Up to $5,000,000 | Up to $5,000,000 |
Common Use | Businesses, schools, offices | Homes, condos, small rentals |
NCIP Private flood insurance may offer higher limits and more flexible terms, depending on underwriting and location. Agents can explore these options by logging into the CATcoverage.com portal and quoting NCIP flood in minutes.
Why Agents Must Understand Building vs. Dwelling Coverage
Match the right policy to the property
Avoid quoting errors
Explain coverage clearly to clients
Compare NFIP and private options effectively
For example, quoting a residential home under a General Property Form could lead to issues. That’s why CATcoverage.com makes it easy to quote the correct form—whether it’s flood or earthquake coverage.
How to Quote Flood Insurance Accurately
Ask if the property is residential or commercial
Check how many units are in the building
Review what’s permanently installed vs. personal contents
Consider adding contents coverage if needed
Tip for P&C licensed insurance professionals: If you're not yet appointed, you can Become a Producer to access NCIP quoting tools and flexible coverage options.
Match Flood Coverage Type to Property Before You Quote
Understanding the difference between building and dwelling coverage helps agents quote smarter and avoid mistakes. Whether you're quoting through the NFIP or offering private flood insurance through CATcoverage.com, matching the coverage type to the property is key.
Already appointed? Log in and Quote NCIP Private Flood in Minutes. Need earthquake coverage, too? You can quote Quake in Minutes from the same portal.
Frequently Asked Questions: Building vs. Dwelling Coverage in Flood Insurance
Q: Can one policy cover both building and contents?
A: Yes, but contents coverage must be added separately.
Q: Is dwelling coverage only for homeowners?
A: No. It can also apply to rental homes and condos, depending on ownership.
Q: What’s the NFIP coverage limit for dwellings?
A: Up to $250,000 for the building and $100,000 for contents.
Q: Does NCIP offer higher limits than NFIP?
A: Yes! See a full comparison here: NCIP vs NFIP
Q: Can I quote earthquake coverage through CATcoverage.com?
A: Yes! Log in to the portal to quote quake coverage in minutes.
*Not all policies through CATcoverage.com use the NCIP policy form.
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