Common Types of Homeowner Insurance

There’s no such thing as a standard home insurance policy that everyone across the country purchase to safeguard their homes. Insurance policies are of different types and are suited based on buyers’ needs. For instance, certain areas in the country experience high rates of burglaries whereas the west side is known to have a lot of earthquakes.

 home insurance

home insurance

Different policies cover damages for different events and it helps to be well informed before purchasing any specific policy.

In this blog, we’ll take a look at the common types of homeowner insurance and what sets them apart.

1.    Basic Form Policy

The basic, also referred to as the peril homeowners’ insurance policy, is the cheapest of its kind but also offers the minimum amount of coverage. It mostly deals with dwelling protection and covers for damages resulting from fire or smoke, explosions, theft, vandalism, hail and windstorms, lightning, volcanic eruptions, civil commotion, riots, vehicles, and aircraft.

2.    Broad Form Policy

As the name implies, broad-form policy expands on the previous one’s liability by including damages resulting from falling objects, overflow of water or steam, artificially generated electricity, freezing of air conditioner or heating units, and the weight of ice, sheet, and snow.

3.    Special Form Policy

This is the most common type of homeowners insurance due to the range of its coverage and affordability. It encompasses everything included in the Broad Form Policy as well as your personal belongings, property, and liability. It does, however, exclude damage from floods and earthquakes.

4.    Tenant’s Form Policy

This policy is for renters who want to protect their personal liability and belongings. The coverage doesn’t extend to the house itself since that is taken care of by the landlord’s home insurance. Additional living expenses can also be adjusted into this policy.

5.    Comprehensive Form Policy

This policy covers all forms of perils for both liability and belongings except those listed as exclusions by the policy itself. Perils that are not a part of this policy include damage done by floods and earthquakes. In terms of coverage, this is the broadest policy available and is more expensive than the special form policy.

6.    Condo Form Policy

This policy is purchased by condominium owners that wish to protect their personal liability, belongings, and interior structure including the walls, ceilings, and floors.

7.    Mobile Home Form Policy

This policy is also similar to Special Form Policy but only applies to manufactured or mobile homes.

8.    Older Home Form Policy

The Older Home Policy is geared towards older homes and offer similar protections to Special Form Policy but with adjustments made to suit older homes.

When purchasing a homeowners policy, try to determine which one best suits your need. This way, you won’t end up wasting money on buying the wrong policy. Manatee Insurance provides home insurance in Bradenton, Florida. They offer estimates over the phone and make the purchasing process extremely easy. Contact them today for more information.


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