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Insurance Resources Homeowners insurance doesn’t have to be expensive. In fact, if you comparison shop for insurance you’ll find that rates can vary as much as $1,000 a month from one company to another.  Click the button below to see how much money you can save by getting rate quotes from multiple companies. Understanding how insurance works is important if you want to be sure you’re getting the right coverage for your particular needs. Don’t be in the dark about your insurance. Click on the link below to get a complete guide to what homeowners insurance does and doesn’t cover. There are a number of ways to save on insurance in addition to switching companies. Click the button below to see various methods you can use to save on your home insurance costs.
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Homeowners Insurance

Homeowners Insurance - What Are The Types Of Policies?

Insurance policies vary according to different peoples’ needs. For instance, a homeowner would not purchase the same policy as the one a renter would. In as much as there may be a standard policy for all the home owners or all the renters, there has to be a difference in the policies depending on the amount of coverage provided by each policy. Besides that, different companies will provide different insurance packages with different rates. This article takes you through some of the insurance policy provisions: For homeowners Homeowners have a wider variety of policies to pick from with the most popular of them being the HO-3. This is preferred, especially by multi-family owners, because it has a provision to cover all the risks that renters may bring when they live in your house. These are some of the other policies: HO-1: this is the most limited one that covers only up to the first ten disasters. these policies are rare in most of the states these days. HO-2: this is the basic policy which covers both permanent homes and mobile homes against all the sixteen disasters. HO-3: here there are very minimal exceptions to the coverage and it is the most popular. HO-8: when you need to refurbish your old home, this is the best policy as it comes less the depreciation cost. For renters If you're a renter there is the HO-4 that protects your personal items against all the sixteen disasters. You may be a renter but you may still have possessions like kitchen cabinets fitted in your home which you could be covered for in case of a disaster. For the condo owners For condo or co-op owners, there is a policy that covers your property and any additional structures that may be found within the building. This also covers all the 16 disasters. Coverage level There are different coverage options depending of the status of your home ownership. You may choose any of these: i. Cash value: this ensures that your property or home is covered, only this time, without the depreciation costs deducted. ii. Replacement cost: this covers rebuilding your home or your possession replacement without deducting the costs for depreciation. iii. Guaranteed replacement cost: this is the policy that offers you maximum protection. In case your home is stricken by a disaster, say a fire, the policy will cover all the costs required to get your home repaired even if the cost of repairing exceeds the limit of the policy. This is a good policy because it makes it safe for you to rebuild your home even if there is an increase in prices of the construction materials you might need. It may not give you the option of upgrading your home, but if you wish, you could increase your policy with a rider to help cover any additional costs. If you are lucky, your company could have extended coverage which offers an additional percentage amount for  rebuilding your home.

Here’s a video explaining homeowners insurance coverage

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