Home owner’s insurance is a very important insurance policy to have. Anyone who owns their own home or is buying their own home should make sure to be covered under this type of policy. A home is most individual’s single largest asset and needs to be protected against outside circumstances. House insurance is actually a requirement for most lenders in order for them to approve your loan to purchase a home.

The most basic house insurance coverage is known as HO-1. This protects your dwelling place and personal property from lightning and fire, wind storms, large hail, from airplanes, vandalism, and civil commotion.

Your home is most likely the most expensive possession that you have. This makes it essential to insure it so that you can be sure to have it covered, along with your personal possessions inside. Buying a good house insurance policy means that you need to be an informed buyer. Here are some details.

Two Types of Coverage

A house insurance policy will either give you coverage for the actual value, or for the replacement value. Actual value includes depreciation, which means that an older house may only get 50% (or less) of the current value. This type of house insurance policy could leave you without a house because there may not be enough cash to rebuild.

Replacement value, on the other hand, will give you a house of equal value – in modern materials. This is the more expensive of the two types of policies.

When you are thinking about insurance to cover your home in the event of an accident or natural disaster, home or house insurance is what you will need. A basic policy will cover loss of your home, your possessions or loss of the use of your home during any type of accident or disaster that may happen.

All policies are long and they spell out in detail what you are paying a premium for and what will be covered. The challenge with policies is that things like earthquakes, floods, “Acts of God”, war (including nuclear explosion) are excluded. This is not easy when you are dealing with a home in some of the areas where these things can occur. However, you can usually get a specialty insurance that protects you from these disasters. As an example, you can usually purchase flood or earthquake insurance in addition to the regular insurance policy.

Types of Homeowners Insurance:
There are generally seven types of homeowners insurance that an individual can purchase based on need. These are: