Home Insurance: What you should know
It was sometime in 1950 that the first home insurance policy was introduced in the United States. It was in the late forties when the US Insurance Law was reformed. During this process multiple line statutes were written allowing home owner policies to become legal. During that time the insurer should purchase separate policies for various perils that could affect the home especially in the years before 1950. Meaning you can have a number of policies for various coverage.
In 19O was however, because there was a need for standardization, a company based in Jersey City, Insurance Service Office was formed. This is to provide risk information and issued a simplified homeowners policy for resell to insurance companies. But these policies have been amended over the years.
There different types of standardized Homeowner Insurance that are in general use, that the ISO has. To mention the six (6);
Home Owner 1. The Basic Home Owner Policy
This home owner policy provides coverage on a home against eleven (11) listed dangers. These dangers or perils are explicitly mentioned or enumerated in the policy contract. This includes fire or lightning, windstorm, vandalism or malicious mischief, theft, damage from vehicles and aircraft, explosion riot or civil commotion, glass breakage, smoke, volcanic eruption and personal liability. However, damages resulting from floods and earthquake are excluded.
Home Owner 2. Broad Homeowner Policy
This is a more advanced policy because this provides a coverage in a home against not only eleven (11) listed perils but seventeen (17). The perils mentioned in Home Owner 1 Policy are included. This policy is usually called the “named perils” policy, which lists the events that would be covered.
Home Owner 3. All Risk Homeowner Policy
This is the most comprehensive form of homeowner policy. This gives “all risk” coverage on the home with some perils excluded like flood and earthquake.
Home Owner 4. Renter’s Insurance
As the name implies, this policy is offered to people who rent a home. This is sometimes called “Tenants” form. This covers personal property against perils mentioned in Home Owner 2.
Home Owner 5. Condominium Policy
This policy is offered to condominium owners. Nowadays, condominiums are already considered permanent homes of many people especially in big cities.
Home Owner 6. Older Houses Policy
This is considered as the “Modified Coverage” policy. The owners occupy older homes wherein replacement cost for exceeds the property’s market value.
With the different types of policies mentioned there is one that fits your need. You can have free quotes of this insurance policy from any insurance company in your locality. You may also call their office by phone to get the cost of the insurance package you have chosen. Or you can have the chance to choose any of the insurances and the right costing on line. Be sure you get the correct package for your home from a reliable insurance company.
Ask for free insurance quotes now!