Types Of Homeowners Insurance Policies

By: Joy Block
No matter if this is the first time you are shopping for a homeowner'sinsurance policy or if you currently have a policy, it is always a goodidea to be well educated to make sure you have your home properly andadequately covered. It is also important to know what your deductibleis.Standardized HO (home owners) insurance policies include:?? 1. HO-Aprovides extremely limited actual cash value coverage for your home andcontents. Only the types of damage specifically listed in the policyare covered. HO-A amended policies provide more extensive coverage thanthe base HO-A but less coverage than an HO-B.?? 2. HO-B provides replacement cost coverage for most types of insurable perils, except for exclusions.?? 3. HO-C policies provide the most extensive coverageWhenyou shop for homeowner's insurance, it is very important that you knowwhat your policy covers.

Your policy is designed to protect homeownersfrom insurable perils. These perils can include fire, theft, hurricanesand several other events. Your individual policy is determined by namedperils and exclusions. Policies can differ from homeowner to homeowner.With your agent's help, you can determine how much coverage you andyour family need.To receive full payment (minus yourdeductible) for a partial loss, you must insure your house for at least80% of its replacement cost. If you insure for less, the insurancecompany will only pay for part of the expense of a partial loss. Ifyour home is destroyed and you only have actual cash value coverage,you may not be able to completely rebuild with the claim payment youreceive.With any policy there are exclusions. Your policytypically does not cover injuries to animals or damage to motorvehicles or aircraft. You also are usually not covered for losses dueto floods, mudslides, water damage from sewer backups, damage from waror nuclear hazards, neglect, earthquakes, power failures, seepageArticle Submission, dryrot or vermin.Homeowner's insurance policies have differentcovered perils and exclusions. Check your policy carefully so youunderstand the kinds and extent of coverage you have.Search for home insurance and auto insurance before you buy.

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