The Main Home Insurance Coverage Types

Insurance Blog

The purpose of home insurance is to protect your home from all kinds of perils, including theft, vandalism, fire, lightning, and so on. With the help of a homeowners' insurance broker, you will choose an insurance policy that works for you. This article discusses the various types of homeowners' insurance you might want to undertake. Keep reading for the details.

Standard Homeowners Insurance Policy

To protect your home from likely perils, you need a standard homeowners' policy at the very least. It is a broad category of insurance that includes the following coverages:

Dwelling Coverage

This type of insurance covers the physical building, including the walls, floors, ceilings, built-in appliances, and other attached structures. Some of the perils covered by this type of insurance include vandalism, theft, hail, and fire. If your home is completely destroyed, a dwelling coverage can help rebuild it.

Personal Coverage

It covers injury to the body. Therefore, when injured at home or outside, the insurance company will compensate you appropriately. In case of damage to your property, the insurance policy also covers all the resultant damage.

Contents Coverage

Apart from the building, you need to cover the rest of the property in your home. The type of home insurance for that is called contents coverage. If your parcel gets destroyed in a fire, the insurance policy will compensate you up to the stated limit.

Optional Home Insurance Policy

If you want something more than the standard home insurance policy, you can go for any of the coverages in this category. They include the following:

Flood Insurance

The purpose of a flood insurance policy is to protect your home and belongings from damage due to floods. It isn't included in standard home insurance and attracts a separate deductible. You can get it if you live in a flood-prone location.

Replacement Cost Plus

Replacement cost plus insurance provides additional protection whenever you want to rebuild your home following a loss. It is excellent for those with old buildings that are already depreciating. When your home gets destroyed, you will be able to rebuild it without much of a hassle.

Valuables Plus

The content coverage might not include all the contents of your home. You can take out a valuables-plus policy for extra protection if you have valuables like fine art, antiques, and jewelry.

Home insurance comes in two main categories — standard insurance and optional coverage. While a traditional home policy covers damage to the building, optional coverage is for extras such as floods, replacement cost plus, and valuables plus. A home insurance broker can tell you more about your options for coverage.


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