Types Of Home Insurance

“Alright, I need a home insurance. But I don’t own a house” says a baffled home owner who is so worried about home protection but only rents an apartment. Many a home owner know how home insurance are important but don’t know if they really need one or not. Especially to those who are living in a condominium or a home-for-rent, getting a home insurance for their case is a puzzle. Interestingly, there are types of home insurance policies that cater not just to property-owned home dwellers.

As a bird’s eye view, the six types of home insurance policies serve three kinds of home dwellers. For property owned houses, a homeowner’s policy normally will serve a complete protection against damage or loss both to the contents and the house itself. Perilous events that are typically covered by such homeowner’s policy are theft, vandalism, windstorm, fire and even personal liability. It will also cover for additional expenses such as medical payments and additional living expenses.

For those living in condominiums, a type of homeowner’s insurance policy is also available. By default, condominium owners are covered by the association’s insurance policy. Since not all property and contents are covered by these association policies, a separate homeowner’s insurance policy would be a good choice.

For home and apartment renters, the same coverage you get from property-owned home insurance will apply. There is a type of home insurance specially catered for this group and is usually called the renters or tenants policy. As against other types of health insurance, you do no actually need protection for the structure itself since you don’t own it. However you will need protection for your personal properties and liabilities from theft or damages caused by specified perilous events.

Technically, there are 6 basic types of home insurance. These types of homeowners policies are coded with numbers: the types 1 to 3 and 8 are designed for property home owners. Type 4 is designed for home and apartment renters. And Type 6 is designed for the owners of condominium. Some companies refer to these homeowner’s insurance types as HO-1, HO-2 and etc. While others may refer to them as Form 1, Form 2 and etc. Take note though that not all homeowner’s insurance providers offer these six types of homeowner’s insurance policies, so it is highly imperative to review a policy.

Type 1, otherwise called the basic homeowners insurance policy covers home damage caused by natural events such as hail, windstorm, lightning, volcanic eruption, accidents like fire, smoke, explosion, aircraft or vehicle collision, and human perils such as theft, malicious mischief, glass breakage, civil commotion, riot and even personal liability.

Type 2 is called the broad homeowners insurance policy. It covers all that are mentioned in Type 1 plus damages caused by bursting or rupture of the hot water or steam heating system, falling debris or collapse due to snow, sleet or ice weight, accidental water or stream discharge or freezing caused by faulty air-conditioning unit or leaky plumbing and heating system.

Type 3 is called the special home insurance policy. It covers most of what’s stated in Types 1 and 2, with some exclusion. This is the most commonly purchased homeowner’s insurance policy. Though, you will need an endorsement on special coverage for items like computers, jewelries and firearms.

Type 4 is called the tenants homeowners insurance policy. It includes protection from damage caused by the perilous events stated in Type 2.

Type 5 is called the condominium-owners insurance policy. This policy covers for liability and personal property and loss caused by the same perilous events mentioned in Type 2.

And finally, the Type 6, otherwise called the historic home insurance policy. Unique from the other five home insurance types, this is specially designed for historic home owners especially those built with century old designs and materials or located in a historical district. Since the requirements for reconstruction are difficult, most historic homeowners insurance providers require registration. A helpful resource to insuring historical homes is an agency called the National Trust for Historic Preservation. Just a reminder though, if your home is not really that historic and can only be defined as “older”, then it would be best to choose the Type 1 to save you money.