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What are the Types of Homeowners Insurance & Which Do You Need?

There are many types of homeowners insurance at your disposal. However, getting the ideal policy requires research, attention as well as comparisons. Still, many types of homeowner’s insurance policies can fit your unique lifestyle.

The policies can be adjusted based on your specific needs. Homeowner insurance is different from mortgage insurance. The mortgage insurance is taken when a buyer makes a down payment of less than 20 percent when purchasing a property.

Mortgage Insurance

Mortgage insurance covers the lender for issuing the buyer homeownership loan. Therefore, homeowners insurance protects the owner of the home. Similarly, mortgage insurance shields the lender.

If you request mortgage on a home, you must provide proof of insurance before the lender issues mortgage. Usually, homeowner insurance covers four incidents. The policy covers interior damages, exterior damages, loss of personal belongings, and injuries.

Altogether, your homeowner insurance policy has liability limits. The limits determine the amounts you will get as coverage. The minimum limits are $100,000.

However, you can opt for higher limits. If a claim is made, the liability limits stipulate the amount of money that will be used to offset the repairs and replace personal items. The standard homeowners’ insurance policy does not cover acts of war or acts of God, such as floods.

If you live in a location that is vulnerable to these natural disasters, you may be expected to get special coverage to ensure your property. Sometimes, getting an insurance cover that meets your needs is challenging. However, there are many options out there for you.

What are the types of homeowners insurance and which ones do you need?

Below we have listed the variety of types of homeowners insurance to help you decide.

Basic Form Insurance

This is a basic insurance policy, which is the least expensive. It offers the least amount of coverage. It offers dwelling coverage, which covers structures in your home. The policy covers walls, appliances, and ceilings.

This type of homeowners insurance covers items such as furniture as well as clothing in your home. If an incident occurs, you will receive compensation based on your policy. The insurance also covers personal liability such as body injuries within your property.

Some of the perils covered under the basic form policy include theft, fire, lightning, volcanic eruptions. Sometimes, the policy can cover explosions and damages from riots.

This form of insurance does not cover everything. For this reason, you will need to customize your policy for additional coverage to suit your needs.

Broad Form Insurance

It is a type of homeowners insurance that covers all the peril policies included in the basic form of insurance. The policy also covers other perils such as freezing of household items such as refrigerator and heater.

The policy also covers unforeseen damage from electrical current. It also covers the accidental overflow of steam. Other perils covered by the basic form insurance include the weight of ice and damages caused by falling objects.

It may also cover other hazards depending on your preferred insurance company.

Special Form Insurance

You may ask yourself, how much home insurance do I need?

The special form of insurance is your answer. It is one of the most popular policy. It’s affordable and has more extensive coverage.

Some of the perils covered in this policy include theft, vandalism, damages caused by riots and falling objects, among others. Other perils covered by special form insurance include floods and earthquake. The special form of insurance covers your property, liability, and personal effects.

Tenant’s Form Insurance

It is a type of homeowners insurance that covers your personal belongings and liability as a renter. The owner covers the home if he/she has homeowners insurance. The insurance can also include your living expenses as a tenant.

The tenant insurance may cover perils such as damages to household items such as cooker and water heater. Cincinnati homeowners insurance offers such services at good rates.

Comprehensive Form

It is one of the broadest forms of homeowner’s insurance that is available in the United States. The comprehensive form of insurance is one of the best. It is a homeowner insurance policy that covers more perils than any other policy.

The policy covers all the risks covered by other insurance policies.

All the same, the comprehensive form of insurance is expensive. Some of the common perils covered by this policy include floods. However, the policy does not cover anything that is excluded from this policy by the insurance company.

Condo Form Insurance

If you own a condominium, the condo form insurance is the ideal homeowner insurance for you. It is a form of insurance that protects your liabilities, belongings, and any damages to your condo. There are homeowners insurance claims questions that you should ask if you are a condo owner.

For example, if your wall is damaged, where can you file a claim for repairs to be done?

The condo form of insurance covers perils such as wall damages, damages to the floor, and ceiling. Still, the insurance policy can be adjusted to meet your specific needs as a Condo owner.

Mobile Home Form

You may still ask yourself, how much homeowners insurance do I need?

If you have a mobile home, it is ideal to have a mobile home insurance. It is homeowner insurance that safeguards mobile homes only. The perils covered by this insurance covers fire, flood, or any other artificial damages to your mobile home.

Older Home Form

It is a type of homeowner insurance policy that is engineered to safeguard your older homers. The insurer determines the age of your home. It is a basic policy which covers perils such as theft, vandalism, and fire. Older Home insurance policy is modified according to the needs of the clients. The policy also covers damages to personal property and personal liability such as accidents.

Types of Homeowners Insurance

The homeowners’ insurance will cover your property. It covers losses and damages of your household commodities. The insurance also gives you liability coverage against minor accidents at home or around your property.

Contact us for more details and ideas of how to choose homeowners’ insurance policy.


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About the Author

Kaya Wittenburg

Blog Author and CEO

Kaya Wittenburg is the Founder and CEO of Sky Five Properties. Since the age of 10, real estate has been deeply ingrained into his thoughts. With world-class negotiation and deal-making skills, he brings a highly impactful presence into every transaction that he touches.

He is here to help you use real estate as a vehicle to develop your own personal empire and feel deeply satisfied along the way. If you have an interest in buying, selling or renting property in South Florida, contact Kaya today.

Feel free to call me at: (305) 357-0635
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