Home sweet home – Getting the right insurance to protect it

Home insurance is one of the most important insurance policies that are connected to your life. While buying your own dream home, the first thought that comes to your mind is to protect it against any sort of danger. Thus, buying a home insurance policy is a vital decision, whether you have a house or an apartment. While taking a policy you should really know what home insurance usually cover. Your individual requirements are your first priority and getting the right policy can provide you with all the coverage that serves your needs.

Home insurance is there to protect your home against damages suffered from different perils. All home insurance policies are exactly not the same and therefore, it’s important to know what coverage you need to determine which home policy you need.

Here’s a guide to the different sorts of home insurance policies and their coverage.

What home insurance usually cover

A standard home insurance policy is usually divided into two parts which are farther segregated into other headings:

* Part I: Home Insurance Property Protection

This can be divided into the following headings:

1. Coverage A – Dwelling.

2. Coverage B - Other structures on your property.

3. Coverage C - Personal property or contents.

4. Coverage D - Loss of use.

* Part II: Home Insurance Liability Protection

This can be divided into the following headings:

5. Coverage E - Personal liability protection.

6. Coverage F - Medical payments.

These are the standard coverage that has been defined by ISO. Thus, these are not going to vary much, but according to the type of your home, it may be specifically covered by a particular type of policy. So, let’s take a look to the various types of home insurance policies.

Types of home insurance policies:

HO - 1:

This is a basic homeowners, or limited coverage policy. It covers your house and possessions from smoke, vandalism, theft and volcanic eruption, lightning and fire, windstorm, hail, explosion, any civil commotion or riot, etc.

* Note: this policy is obsolete in most states now.

HO - 2:

This is a broad homeowners policy. It covers you house from vehicle caused damage, smoke, vandalism, theft, falling objects, ice, snow or sleet, lightning and fire, windstorm, hail, explosion, any civil commotion or riot, accidental tearing apart, cracking, bulging or burning of steam/hot water system, air conditioner or a fire protective system.

HO - 3:

This is a special policy under the homeowners insurance that provides protection to your house against all perils except those specifically excluded by the policy. It is a mixture of open and named perils, and covers your contents against the 16 named perils as in HO - 2 policy.

HO - 4:

This is a renters insurance policy. It covers 16 named perils and protects against losses to the tenant's personal property. A renter's insurance policy includes liability coverage and does not insure the dwelling itself.

HO - 5:

This is a deluxe policy that provides extensive coverage. It is an open perils policy, which provides coverage to your house and contents against all the perils except the perils listed in the policy. You can get insurance coverage against any damage that is not in the exclusion list of the policy. It also comes with extended guaranteed replacement cost coverage.

HO - 6:

This is a policy for the owners of co-ops or condominiums. It protects you against all listed disasters and protects your personal property in your unit. This policy provides liability coverage and specific coverage of improvements to your own unit. The insurance provided by the owner’s association normally covers most of the apartment building and shared spaces.

HO - 8:

This policy is specially designed for older homes. It covers the same perils as HO-2 policy but pays only for repair costs or actual cash value after calculating the depreciation value, since actual replacement cost could exceed the policy limits, and can be very expensive.

Depending on your need and the type of your house, you can decide on which policy to settle with. Also, don’t forget to compare prices from different companies, as premiums do vary from one company to the other. Remember to read the policy carefully and know from your agent what will be covered and what will be not. Never hesitate to ask questions if you don’t understand your policy terms. Clarify all doubts before buying your home insurance policy, as this will be important while settling your claims.

So, gear up yourself with all the information to satisfy your personal requirements and get your home the coverage that would keep your home safe and secured, as you want it.