FAQ - Homeowners Insurance

There are six basic types of home insurance policies.

Regardless of what state you live in, except Texas, the policies are very similar. Each is defined by the perils it covers. Policy "H-O-1" covers the basic home and it’s contents. The dwelling itself is covered and all personal property is guarded against losses from eleven typed of perils. If your home burns down or is struck by lightening, you are insured against the loss. Other disasters covered include windstorm, hail, volcanic eruption or an explosion. If your home or property is vandalized or if you are robbed, the insurance company will reimburse you for your loss. Your home is also protected against damage from riots or civil commotion. And if any vehicles or aircraft do damage to your property, you will be paid an amount equal to the cost of rebuilding. If you have a mortgage on you home, you are required to have home insurance. These policies are usually very basic and you may want to consider adding special provisions for valuable personal items, such as jewelry or computers. Many homeowners add coverage against natural disasters not covered in the basic policy, such and earthquake.