What does home insurance cover?


Every home insurance policy has four basic and several other extra coverages. They are similar in nature but differ in their coverage of different causes-of-loss. For example, one home insurance policy may include water damage caused by pine line break, while another one might specifically exclude this cause-of-loss if it hasn't been discovered immediately after the failure occurred.

In any way, one must be aware of the exact protection they will get before singing the insurance contract. Otherwise, the insured individual might be unpleasantly surprised when claim hour strikes and they realize that what has caused the damage, is in fact not covered by their particular policy. In order to be aware of what your home insurance policy covers, you need to become familiar with the different home insurance policies you can purchase.

Aspects All Home Insurance Policies Share

  • Coverage A protects the dwelling and all structures attached to it.
  • Coverage B protects other detached structures situated on the property premises against damage or destruction.
  • Coverage C covers personal belongings and pays up to 50 percent of the amount allocated for coverage A.
  • Coverage D protects the insured when their property becomes unusable due to a loss covered by the policy.
  • The additional coverages in most homeowners policies include property and debris removal, glass and glazing, assessment of loss, collapse of a building, plants, trees and shrubs, landlord's furnishings, etc.

Home Insurance According to Losses Covered

This is where the major difference between homeowners policies lies. There are three types of home insurance policies on offer, providing coverage of different extent:

  • Basic form homeowners insurance provides basic coverage for a limited number of causes-of-loss, such as theft, fire, wind and vandalism. Very few people opt for this form of home insurance due to its highly restrictive nature.
  • Broad form coverage provides protection for most causes-of-loss which cause damage to one's lodgings and contents. This is the most common type of home insurance people buy. However, it does not cover any causes-of-loss which are not expressly specified in the insuring agreement.
  • Special form coverage is the most comprehensive home insurance coverage one can get, because it covers any damage to personal property, unless it is specifically excluded in the insuring agreement.
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