Home Insurance Definition:
Home insurance is one of the forms of property insurance which protect homeowners from any damages to the home or property estate. Home insurance additionally protect homeowners against any accidents in home or on the property estate.
“Basic home insurance policy coverage” includes home structure coverage, personal belongings coverage, liability coverage and coverage of extra expenses due to temporarily unavailable to live in the event of fire or other disasters.
Types of Coverage in a “Home Insurance Policy or Homeowners Insurance Policy”:
Let us understand the types of house insurance coverage offered by insurance companies.
|Type A||Damage to House||Any damages to the house will be covered in this policy. For example: Damage due to Fire or neighbourhood work is covered under this policy.|
|Type B||Other Structures||Any structural damages to the buildings or other structures such as a fencing, detached garage and work shed are covered under this policy.|
|Type C||Personal Property||Any damages or loss of personal belongings or household contents used or owned by you and your family are covered under this policy.|
|Type D||Additional Living Expense||Policy covers the necessary extra living expenses up to the insured limit when the house cannot be occupied due to damages.|
|Type E||Comprehensive Personal Liability||Comprehensive Personal Liability policy protects you against accidental claims to others on property that you own or rent.|
|Type F||Medical Expense||Policy protects you against medical treatment expenses. Amount of coverage is limited to a per person and accident for injuries. Most important benefit is that claim payments are made regardless of legal liability.|
“What may or may not cover in Home Insurance Policies”
Mostly home insurance policies cover damages due to fire, theft, destruction, lightning or windstorms. Typical home insurance policy does not cover damages due to flood or earthquakes. Damages due to flood or earthquake disasters are excluded from the home insurance policies. Since policies differ from states to states, It is highly recommended that you contact your nearest sales representative and get it clarified about policies coverage and non-coverage clauses.
How much coverage do you require?
Below are some of the coverage points you should consider before fixing any amount for Homeowners Insurance Policy.
- Property and Belongings Coverage: The better your policy, the less you will need to pay out in the events of misfortunes.
- Self Protection Coverage: You require enough obligation scope to shield yourself from claims that may occur on your property.
- Bank Requirements Coverage: Your moneylender will oblige you to cover the house to the amount of home loan or the replacement expense of the residence in case of loss or damages.
Read Free Tutorial Course - Basics of Insurance for Beginners
» e-Learning Chapter 1: What is Insurance Policy and Types of Insurance.
» e-Learning Chapter 2: Fundamentals of Risk and Insurance.
» e-Learning Chapter 3: What is Health Insurance Policy and Types of Health Insurance.
» e-Learning Chapter 4: What is Disability Insurance Policy and Types of Disability Insurance.
» e-Learning Chapter 5: What is Life Insurance Policy and Types of Life Insurance.
» e-Learning Chapter 6: 4 Key Consideration Clause of a Life Insurance Policy.
» e-Learning Chapter 7: What is Term Insurance Policy and Types of Term Insurance.
» e-Learning Chapter 8: What is Auto Insurance Policy and Types of Auto Insurance.
» Currently Reading: What is Home Insurance and Types of Home Insurance.
» e-Learning Chapter 10: What is Travel Insurance Policy and Travel Insurance Coverage.
» e-Learning Chapter 11: Other Different Types of Insurance Policies.
» e-Learning Chapter 12: Tutorial Quiz – Basics of Insurance for Beginners Module.