subject: Home Insurance Coverage Overview [print this page] Home Insurance Coverage Overview
Home insurance or rather home owners insurance or hazard insurance is a type of insurance that covers private homes. This insurance covers personal protection of one's home, loss of its use, the home's contents and also takes care of all liabilities for accidents that may occur within the home. The home insurance includes the coverage of both the property and liability with a single premium payment for all risks involved.
The home insurance policy spells what is to be catered for and what is not to be catered for in case of an eventuality and its cost depends on how much it will cost to replace the home as well as its contents. The amount of premium also depends on the likelihood of the home to be involved in any risk. Perpetual insurance is a type of insurance that does not necessarily require a fixed term of payment.
The home insurance policy is classified into about 5 sections that include coverage of dwelling, other structures, loss of use or additional living expenses, personal property and additional coverages. The dwelling coverage takes care of the value of the dwelling excluding the land. In this coverage, a home owner is guaranteed to get replacement of the losses as long as the insurance is of up to 80% of the actual value.
The renter's insurance does not have the dwelling coverage. The other structures coverage takes care of all surrounding structures that are not used for business excluding private garages. The loss of value or additional expenses takes care of all expenses related to the additional living expenses and not the rental services like utilities. The personal property coverage takes care of all personal property and the property of those living in that home except those that are stolen or lost.
Usually, about 70% of the dwelling coverage is required for this. Additional coverage takes care of expenses like fire department charges, landlord's furnishing, reasonable repairs, debris removal, damage to specified trees and shrubs, which is not caused by either wind or ice and other common causes of damage, removal of property, loss assessment and other building additions.
For extra protection and endorsements like theft protection, scheduled personal property, inflation guard, secondary residence, credit card forgery coverage, extended replacement and guaranteed cost coverages one needs to endure more costs for such services.
There are many types of policies for home insurance as provided for by the insurance service office. They include Basic Form Homeowner Policy, Broad Form Homeowner Policy, Special Form Homeowner Policy, Premier Homeowner Policy, Condominium Policy, Older House and the Renter's Insurance. The choice of the type of policy depends on personal needs.
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