Homeowner's Insurance 101

Protect your home against diasters with homeowner's insurance.

Homeowner's insurance protects a home against disasters with some exceptions. Homeowners should look at different policy types and various coverages to determine the type of homeowner's insurance they need.

Policies

Homeowner's insurance policies vary depending on the amount of insurance coverage provided, according to the Insurance Information Institute. The amount of protection a homeowner chooses depends on the type of natural disasters the area gets and the age of the home.

Coverage

Homeowner's insurance policies cover natural and man-made disasters that can damage or destroy the home. Basic plans cover fire or lightning, windstorm or hail, explosion, riot, aircraft or vehicle damage, smoke, vandalism, theft, volcanic eruption, falling objects or weight of snow, ice or sleet. Premium policies include other disasters.

Considerations

When choosing a homeowner's insurance policy, consider how you want to receive reimbursement for damage. You can receive the actual cash value of your possessions or the replacement cost of your home repair and possessions. Premium policies offer guaranteed or extended replacement cost, meaning your insurance company will pay whatever it costs to repair your home and replace your possessions.

References

• Insurance Information Institute: What is Homeowner's Insurance?
• Insurance Information Institute: What Type of Disasters are Covered?
• Insurance Information Institute: Are There Different Types of Policies?