Insurance has added value to society. It has provided a good financial tool against the potential risks involved in our financial doings. Insurance is now expanded vastly. Just imagine any financial entity you will find insurance engaged in it. It is not only limited to our businesses, but our personal belongings, like our home, are also included in the package.

Homeowners insurance covers losses resulting from damage to buildings, personal belongings, and liabilities or legal responsibilities for injuries and accidents caused by the policyholder and their family to others. It provides financial assistance in case of property loss due to theft, fire, and other sources of damage, as detailed in the insurance policy. 

What is included in Homeowner Insurance?

The standard Homeowner Insurance includes various key coverages, but here are 4 prominent coverages included in it.

Home Structure

Homeowner insurance covers any damage to the home building. It pays for the repair or rebuild if it is destroyed fully due to fire or any other means listed in the insurance policy. 

Personal Belongings

In personal belongings, the insurance policy covers the damages to clothing, furniture, sports items, electronics, and other use of livelihoods. It pays if the damage is caused by fire, hurricane, theft, or other source of destruction included in the policy. Usually, insurance pays 50% to 70% of the total loss. Jewelry and other expensive items are also included in the package if stolen, but their dollar value is considered. Home plants are also part of the Homeowner Insurance policy.

Liability Protection

In liability protection, the insurance company covers lawsuits against severe bodily injury or other damages of assets caused by the policyholder and his family to others. Damage caused by personal pets is also included. Liability covers both the court expenses and any award imposed by the court. 

Extra Living Expenses

This package includes payments of hotel living, meals, and other expenses in inhabitable homes. The package differs from company to company. 

What is not included in Homeowner Insurance?

The standard policy of Homeowner insurance excludes the following:

• Damages caused by flood
• Destruction caused by the earthquake
• General Maintenance
• Pets Infestation
• Intentionally damages done  by the homeowners

Types of Homeowner Insurance

The variety in homeowner insurance changes from state to state. It also differs in companies offering the services. Anyhow, here are a few types of Homeowner insurance policies.

HO -1

It is a very basic version which covers:

• Fire
• Theft
• Weather related damages

HO -2

It covers more than HO-1

• Falling objects
• Freezing pipes
• Electrical damages
• Home and personal property are included in it

HO-3

It is the most common type of Homeowner’s insurance, it covers the following

• Provides coverage for home and attached structure
• Personal property is included in the package
• It includes Liability protection and additional living expenses

HO-4 

This is favorable for renters.

• Covers personal belongings
• Liability
• Infrastructure is not included in it
• Loss of use coverage

HO-5

This is the comprehensive form for the category of homeowner insurance.

• Home
• Personal property protection
• Fewer excursion
• Higher policy limits
• Recommended for expensive belongings

HO-6

It is known as Condo insurance and it covers the following:

• Personal belongings
• Liability
• Improvements for condominium units
• Does not cover exterior structure

HO-7

• For mobile and manufactured homes
• Covers physical damage of homes and the attached structure

HO-8

• Preferrable for older homes

Coverage Evaluation

While making the deal, consider the following before signing the Homeowner Insurance. 

Replacement Cost

It is to be ensured that the coverage is enough to rebuild a home

Property Value

Estimate the cost of your property and personal  belongings

Liability

Make sure the liability limit is sufficient to deal with the average lawsuits

Additional Living expenses

It has to be considerable for outside housing and related expenses.