Home insurance, sometimes called home owner insurance, is a type of property insurance that covers private properties and provides personal insurance protections such as losses to one’s home and its contents.
A home insurance policy coverage has four types, namely coverage for loss of or damage on the structure of the house, personal belongings of people living in the house, liability protection and for additional living expenses.
Coverage for loss of or damage on the structure of the house – This type of home insurance policycoverage offers protection by ensuring that homeowners will be paid while rebuilding their homes destroyed or damaged by a disaster or disasters as indicated in the home owners’ policy.
A standard insurance policy covers structures that are not attached to the owner’s home, including sheds and garages, for about ten percent of the total amount of the property’s insurance.
Home content insurance coverage – This policy covers personal belongings inside the home. The coverage is not less than fifty and not more than seventy percent of the total value of the belongings in the house.
When homeowners conduct an inventory, they can determine if the quoted amount will be sufficient. Some home insurance companies offer policies that cover off-premise coverage. This means that a homeowner’s belongings are covered wherever he is.
A floater or special endorsement is recommended for homeowners who want to provide additional protection on their expensive belongings.
- Liability protection – This coverage offers protection to the insured against home insurance claims due to accidents that happened to other people while they are on the property that he rents or own.
- Additional Living Expenses – This policy covers incurred additional living expenses by the insured up to the stipulated limit on the policy. This coverage applies only when the homeowner is forced out of his property during repairs of structural damage caused by a covered disaster.
Homeowners should conduct a thorough research on various home insurances before deciding which one to buy. A home and its contents are investments that deserve protection.