The Many Types Of Homeowners Insurance

If you need to get insurance for your home, or are just interested in how homeowners insurance works, then there are a lot of categories to learn about. To help you get started, here is a brief overview of the most popular types:

Basic - Although this isn't the most limited type of policy, it covers very little. It covers fire damage and some environmental dangers (such as hail and lightning), along with damage caused by other people, such as vandalism and theft. Depending on where you live and how many HVAC systems you have in your house (like heating and air conditioning), a basic plan could be sufficient to cover all your needs. For instance, if you don't live in a place that snows, don't have any trees near your home, and don't have central heating or air conditioning, then a basic plan will be quite effective at handling your needs.

Broad - Broad covers the same stuff as basic, as well as snow damage, damage caused by various HVAC systems failing, and falling trees. This is a substantial step up from a basic plan and is recommended if you live anywhere that snows or if you have central heating or air conditioning. There is a chance that those systems could malfunction, and if that happens while you aren't at home or aren't paying attention, it could end up causing extensive damage to your home. Having insurance that covers such an eventuality is both good for your wallet and your peace of mind.

Special - This type covers almost all types of damage aside from the categories that are specifically excluded, including flood, earthquake, and nuclear damage. This is the best option for most homeowners, since it covers just about every type of hazard that you are likely to encounter. If you live in an area that has a chance of flooding, then you will probably need to get a separate type of insurance for that.

Renter's - If you rent rather than own your home, then you will probably want to get renter's insurance. Unlike the types listed above, renter's insurance really only covers your belongings. Your landlord will likely have a separate type of insurance on the home that will cover structural damage, while your insurance covers everything that you own.

Dwelling Fire - The is the most limited type of homeowners insurance and will only cover fire damage to the house itself. It doesn't cover any of your belongings and is meant to preserve the value of the home rather than to help you recover from damage.

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