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Your standard dwelling fire policy offers protection for your home and other permanent structures on your property for the following perils. A dwelling fire policy is similiar toa homeowners insurance policy. A person who owns a house and lives in that house would have a homeowners insurance policy on the residence. A person who owns a house, but, rents it out to someone else would have a dwelling fire policy on the residence. Dwelling fire policies are often slightly more expensive than a homeowners policy because there is a renter, not the owner, living in the home.