The Many Different Types of Home Insurance Explained
Home insurance is something that every single homeowner should certainly not neglect to invest in. Other names for home insurance are hazard or homeowner’s insurance, and these policies can cover a whole range of different topics from the cost of the actual house to the items within to many other things. You can create policies to protect you from anything ranging from fire to theft, to nuclear war. If you are looking into hazard policies then you need to know the various types of policies that are available to you.
The first and most simple form of home insurance is the basic policy, which covers 11 topics, including vandalism, theft, and storm damages, plus a few more. This is the cheapest and least broad form of insurance for home owners, and for that reason is very widespread in its use.
A broader insurance policy is the broad form homeowner policy, which takes the number of risks covered up from 11 to 17. On top of the other risks that are covered in the basic policy, the broad policy also covers things that either the insurance company or you can specifically name.
One of the most popular policies is the “all risks covered” policy, also known as the special form homeowner policy. This is very similar to what its name suggests, in that everything not specifically spelled out as excluded on the policy will be covered. However specific things are left out including flood and earthquake damage.
There is also home insurance for renters, called tenant’s insurance. This usually comes basically in the forms of either the first or the second homeowner’s insurance policies depending on what the renter prefers.
The premium homeowner policy is the most expansive policy a homeowner can get, which covers basically what the special form homeowner policy covers plus much more. This is also one of the most expensive types, yet one of the surest ways to protect your home in almost any and all emergencies.
Finally, a last policy is for old houses, homes which are almost antiques and whose price to replace is really much more than it sells for on the market. This policy only applies to homes in which the owner is currently living.