Homeowners' insurance policies are those policies, which provide coverage to people who own a home. Many people think that homeowner's policies provide protection only from natural calamities, fire or other disasters. No doubt, homeowners policies offer coverage by insuring the house against such calamities, but they cover other expensive household things too. However, the range of coverage depends on the type of plans that a homeowner chooses.
This means that before you apply for a homeowners insurance policy you should find about the types of homeowner policies and their benefits. Therefore, your first step is to make an inventory list of household objects. These household possessions can include jewelry, furniture, electronic goods or anything you feel you wish to have covered by the insurance policy.
Different types of Homeowners Insurance
The first type of homeowners insurance is limited type of policy in which the insurance companies provide coverage to specific parts of house. This type of coverage provides coverage against sleet, ice, surges, outages and plumbing malfunctions and so on. It does not insure damages to house due to other systems such as television or other electronic items. This policy is useful for people who live in regions of heavy snowfall, or in mobile homes.
The second policy covers a house and household items. It may comprise objects such as paintings, jewelry, furniture and burglary. It also covers a house against 10 perils including explosions, vandalism, and defacing of house by animals. This policy is a basic kind of policy in which premium rates are affordable. However, it is no longer available in most states.
The third policy covers all aspects of homes such as structure and other household contents. This policy also bears all costs, if a visitor suffers from injuries in the premises of the homeowner's residence. It also protects coverage against floods, earthquakes, and war.
The fourth type of homeowner insurance plan is for individuals who live in rented houses and co-operative buildings. It provides coverage against all disasters. It also covers household items owned by the renter.
The fifth type is an insurance policy that covers a home and every household thing. If visitors suffer from injuries in the house owners premises, the insurance company bears all the medical costs.
The sixth policy is for condo owners. This policy provides coverage to the condo as well as its premises. In addition, if guests or residents suffer from any injuries in the condo or on its premises, the company bears all medical expenses.
This final policy is for older homes. It usually compensates the owner on actual cash value basis. Thus, the owner gets an amount equal to replacement cost minus depreciation. Full replacement cost policies may not be possible in some cases of these old homes.