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Comparing Home Coverage

Written by: Alston Balkcom

Article Overview: Making decisions regarding home insurance can be easy when you understand the fundamental structure of the standard home insurance policy.

Comparing Home Coverage

Making decisions regarding home insurance can be easy when you understand the fundamental structure of the standard home insurance policy. Unlike medical insurance, homeowners insurance has been standardized. This makes it much easier to compare policies. Most homeowner insurance policies are based on the ISO Homeowner 3 Special Form it is also known as an HO-3. Certain states require certain amendments and there are differences between the different homeowners insurance carriers' policies. However, even though they are not the same, the policies will be more similar than different so long as the policy is an HO-3 policy.

A Coverage - Dwelling

The A coverage defines how your dwelling and certain attached structures are insured. If you have an attached tool shed it is included in the A coverage.

B Coverage - Other Structures.

These are structures that are not attached to your residence premises or that are separated by a clear space or are connected only by a fence wall, wire or other similar structure. A detached shed would be covered by this section of the policy.

C Coverage - Personal Property

Personal property includes most of the property that you own that is not considered real property. Property that is attached to the land is considered real property. Property that is attached to real property is also usually considered to be real property.

This means that a wall-to-wall carpet will be real property, but a throw rug will be personal property.

The personal property section of your policy will cover more than just the posessions in your home. It will also cover posessions of yours that is in other locations. However, there are limits and restrictions. Your road-legal vehicles will be specifically excluded. There will be limits on cash. There will be other limitations and restrictions on your house owners policy.

D Coverage - Loss of Use

Your home policy will likely pay your housing expenses if you are unable to live in your home due to a covered peril. You may be able to stay in a motel while your residence is made liveable again and have those expenses covered by your policy.

E Coverage - Personal Liability

A standard HO-3 homeowner policy includes liability coverage. This can pay if someone is injured on your property. It can also pay if you accidentally injure someone far away from your property. There are limitations on this coverage, but it probably covers more situations than you realize.

F Coverage Medical Payments to Others

Section F - Medical Payments to Others is similar to the liability coverage section. However legal liability is not required for payments to be made. This section provides limited coverage in situations where an insured person causes an injury to another person. Its purpose is to pay for the small stuff without requiring costly legal red tape. The personal liability section of your policy is there to pay for the larger more costly situations.

Homeowners insurance is an important coverage. It covers not only damage to your home, but can also cover damage to your personal possessions, reimburse you for the housing costs while your home is being repaired and can pay others if that you might injure due to a negligent act.

Understanding the basic structure of a house owners insurance policy can help you to compare policies, since the fundamental structure of most homeowners insurance policies will be the same regardless of which carrier you make your purchase through.

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Article Tags: amendments, dwelling, fence, fundamental structure, home insurance, homeowner insurance, homeowners insurance, insurance, insurance carriers, insurance homeowners, insurance policies, insurance policy, making decisions, medical insurance, personal property section, posessions, premises, throw rug, wall carpet, wall to wall
Referred by: http://www.searchengineworkshops.com



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