Homeowner’s insurance provides financial security to the home as well as to the belongings in the home against any disaster. A good insurance policy is one that would provide some kind of a financial relief after an adversity.

A standard home insurance policy includes four types of coverage: structure of your home, belongings in the home, liability protection and any additional living expenses if the occupant has to temporarily leave the house because of any insured disaster such as a fire.

The insurance company would pay for any repair or rebuilding expenses if the house is damaged by fire, lightning, hurricane, hail, theft, explosion, vandalism, falling aircraft or any other disasters listed in the policy.

Normal Home Insurance Costs and How to Beat Them

Generally, a different policy needs for be taken for insuring against earthquakes or floods. Homeowner’s insurance policies would also pay for furniture, clothes, and any other appliances that have been stolen or damaged due to reasons listed in the policy. There is also an option to insure off-premises goods.There is however, a dollar limit for covering jewelry, furs, silverware, and other expensive goods.

A standard policy also covers trees, shrubs, and plants. Another important part of any standard homeowner’s insurance policy is the liability coverage. This provides coverage for any lawsuits against the damage caused by the insurer or the insurer’s pets to other people or property. This also includes no-fault medical coverage. Such liability limits start at around $100,000, and $300,000 coverage would be ideal insurance.

How to Pick a Good Home Insurance Policy

The annual premium for the homeowner’s insurance policy can be significantly reduced by taking some precautions such as installing security alarms, deadbolts on the doors, and smoke detectors and fire extinguishers in the house. Increasing the deductible can also lower the premium. By increasing the deductible to $500 from $100, an insurer can save as much as 10% on the insurance payment.

Some insurers also give discounts for people who take multiple policies with them. There are many kinds of homeowner’s insurance policies available on the market. The main aspects to be considered are: how much will the insurance cost on a monthly basis? Are there any deductibles to be paid? And, most importantly, what does the policy cover and not cover?

Homeowners Insurance Exclusions

There are seven basic kinds of homeowner’s insurance policy packages available: HO-1; HO-3 and HO-4; HO-6 and HO-8, HO-2 and HO-5. These include the basic form, the broad form, the special form, renters' insurance, the comprehensive form, condo owner's policy, and older homes policy.

The best way to get the ideal policy is to shop around. Get the help of an insurance agent if you are not sure. A long-term policy is better. Check out the insurance company’s credentials. A new home would attract a lower premium; so insure the house as soon as you buy it. Some companies also give as much as 10% discounts for senior citizens.

Group discounts would be more practical. Keep updating the policy every year to include or exclude any other property. The Internet, newspapers, Yellow Pages, insurance agents and family and friends are the best sources for locating homeowner’s insurance polices.