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Types of Home Insurance

Majority of the individuals who compromised on their home insurance or for that matter any type of insurance, had to pay a price for the same. However, home insurance is one area which you cannot afford to ignore especially if you have spent your savings in building the house.

It doesn’t make sense to ignore home insurance because there are many types of home insurance policies that are available in the market that will suit your needs and budget. So, all you need to do is shop around for one from a reliable home insurance provider.
However, if you are aware of your financial limitations and you know you will not be able to continue making home insurance premiums for the same, you can settle for home insurance policy that will offer you the opportunity to opt for selective insurance albeit risks.

 

Home insurance providers offering tailor-made Home Insurance

 

Owing to the fact that there are many home insurance providers that offer you customized home insurance plans, you can take your pick depending on how much cash you can free up for the home insurance premium.
Although the types of home insurance coverage will differ but the underlying concept of home insurance is the same from time immemorial. Let us find out the different types of home insurance policies and the coverage they offer.

 

Types of home insurance

 

There are different types of home insurance policies and some of them include the following –
 
  • The first type of home insurance policy is the coverage for the building of your home. If any damage is caused to the structure of the building due to any of the following reasons, home insurance policy kicks in. Check out the factors that qualify for this coverage –
 
-Theft
-Fire
-Ice
-Lightning
-Smoke
-Vandalism
-accidental flood (due to plumbing activities etc)
 
However, make sure that you read the fine print of your home insurance policy and you are aware of the exclusions.
 
  • Types of home insurance offered by home insurance carriers may differ so if you happen to find coverage under a different name, do not get confused. Instead try to find out the coverage it is offering.
 
The second type of home insurance is insurance of the contents of the building. It is important that you work out an inventory of your valuables/assets before including the assets in your home insurance.
 
  • Types of home insurance policies may also include liability protection. For instance you have a visitor in your home and for unforeseen reasons, he gets hurt or injured. You are liable for the incident. But if you have liability home insurance coverage, the policy can pay for the cost you have to incur for the injury or the damage.
 
  • Home insurance will also cover temporary expenses in the event you move away from your house temporarily.
 
Opting for Comprehensive home insurance coverage will include every risk (building as well as contents). So, you are adequately covered. If you opt for home insurance with named perils, your coverage is selective and will protect property mentioned in the policy.
 
Additional home insurance coverage is also included in types of home insurance policies. These are usually called riders. So, you can add these riders to your basic home insurance policy to avail additional coverage.