Every homeowner has the responsibility of preventing his or her home from unforeseen events that can cause irreparable damage to their property.
Apparently, these days, most home disasters causes damages that are beyond repair.
Some might strike leaving nothing behind to replace.
Homeowners insurance policies, also known as 'HO Policies', protects the home against damage and provide insurance against loss of personal belongings.
Homeowners insurance policies can be classified into 6 sub categories.
Getting The Best Homeowners Insurance Choosing the Appropriate and Suitable Policy At this point, be sincere to yourself.
Don't go beyond or less what you need.
Before you buy that policy, be sure enough it is all that you really need.
Are you sure that provider is worth considering? be sure enough if that policy will suite your budget or not.
Home owners-1: This is the most basic homeowners policy that covers damage due to the following factors: fire, lightning, smoke, vandalism, theft, ice and snow.
Since this policy provides very basic coverage, its popularity has faded over the years.
Home owners-2: In addition to insuring Home owners-1 as mentioned above, this policy protects against loss due to the following: freezing of plumbing, flooding due to plumbing overflow and heating system malfunction.
Generally, mortgage lenders insist on homeowners insurance.
This is because the house functions as their collateral.
While HO-1 covers damage due to 11 factors, HO-2 protects against 17 factors that may result in loss of property and belongings.
Which means HO-2 also covers content insurance.
HO-3: This policy provides protection against the perils of nature.
The policy premium may be higher in case of homes located in areas prone to hurricanes and windstorms.
The policy also covers up to $2000 worth of jewelery against loss due to theft.
Homeowners-3 policy covers the cost of rebuilding the house in case the house gets destroyed.
Just like the HO-2 policy, Homeowners-3 covers the cost of damage to the house on account of flooding due to plumbing overflow and heating system malfunction.
However, it provides no protection against floods and earthquakes.
Hence, a homeowner is expected to buy additional insurance against flood and earthquakes.
Homeowners-4 and Homeowners-6:Note; both policies do not cover any damage to the building.
They only provide protection against loss of personal property.
Hence, it is ideal for condominium owners and tenants.
Homeowners-5: This is the most comprehensive policy.
This policy is 15% more than the cost of Homeowners-3.
In addition to the coverage provided by HO-3, this policy insures against loss of building and property due to a number of factors.
Buying a package that provides protection against a much number of factors gives peace of mind to the owner.
Also, it is cheaper to buy a single policy that protects against a number of factors rather than buying individual coverage.
Shopping for the Best Quote Both homeowners and renters should shop around for the best quote after deciding on the appropriate policy.
The homeowner may get a good quote by installing surveillance cameras and other security systems.
In general, arming the house will help the homeowner get a good deal on the policy.
Lastly, always shop for free insurance quotes online.
You could get a more suitable and reasonable price to value insurance company.
Who knows? you just might get a more better provider.
You will be saving yourself a lot more on home insurance coverage in future by doing this.