If you are looking into home insurance, then there are a lot of facts to process. There are so many different kinds of home insurance that it can be difficult to tell which is which, and more importantly, which is best for your situation. To help you out, here are some basic questions that will help you narrow down your search and figure out the differences between the most popular types of insurance:
What is the most basic type of home insurance?
At the low end of the spectrum, you have the simple dwelling form. This protects your building from several types of hazards, including fire, smoke, hail, lightning, and vehicular damage. It's important to note that this type of insurance does not actually protect anything inside the house, so if something does go wrong, then you will only be compensated for damage to the actual building.
What is the most common type of home insurance?
As you might expect, dwelling fire insurance isn't particularly appealing to most homeowners, so the most popular option is quite a bit more comprehensive and is known as the broad form.
The broad form protects you from the same hazards listed on dwelling insurance, along with criminal acts, falling trees, collapsed roofs due to heavy snow, HVAC malfunctions, among others. On top of that, your possessions are insured, which means that essentially everything will be covered when it comes to successful insurance claims.
What is renters insurance?
If you rent, then you might wonder exactly how you fit into this system. Fortunately, renters often have a very specific type of insurance that is called the tenants form.
The tenants form has the same level of protection as the broad form, but only applies to your belongings, rather than the building. For obvious reasons, you won't be compensated for structural damage in a building that you don't own. Instead, that will be the responsibility of your landlord, which means that you have one less thing to worry about.
What if you live in a condo?
If you live in a condominium, then you can get insurance that is pretty much the same as the above two types. You will have the same level of protection, and that coverage will extend to everything that you own. Your belongings, your walls, your windows, your floor, and your ceiling will be protected, which means that you should be covered for just about any damage that your home might sustain.
To learn more, contact an insurance agency like Skyline Insurance Agency.
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