Buying a new home is a major step forward in life, so much so that it is often seen as a rite of passage into adulthood. Sure enough, being a homeowner has its fair share of responsibilities, the most crucial of which is choosing the right home insurance policy. Merely having a home insurance policy isn't enough; you have to make sure that it is perfect for your house. Luckily for you, there are thousands of insurance companies offering different kinds of coverage plans. Your job is to gain information about these plans and decide if they will be beneficial for your house in an accidental situation.
Types of Home Insurance Policies
At the very basic level, there are eight types of insurance policies ranging from HO-1 to HO-8. Each of them caters to a specific kind of audience and most of the homeowners insurance policies offered by companies fall in the HO-3 category, also known as Special Form Homeowner Insurance. Under this category, an insurance policy typically covers the house, personal property like furniture, clothes etc., liability coverage and protection against 16 forms of perils like theft, vandalism, riots or fire. If you feel that you don't need a particular form of coverage, you can always ask your insurance agent to remove it from the policy. It is important to understand that insurance policies are very flexible and you can pick and choose clauses according to your requirements.
How to consolidate different elements to have a solid home insurance policy?
Looking for the perfect home insurance policy is almost like solving a puzzle. At every step, you have to put a few pieces together and envision the entire picture simultaneously. It is always a good idea to work on an exclusion basis while customizing your policy. Make a list of all the forms of coverage available and exclude the ones that you don't need. Just to give you a fair idea, here are some of the additional insurance coverage plans available:
Depending on your requirements and budget, you can include or exclude certain policies and come up with a tailor-made, solid home insurance policy.Give us a call at 405-373-2977 to get a free Oklahoma home insurance quote.
- Usually, coverage against damage caused by floods and earthquakes is not included in the core insurance policy. If you live in an area prone to these natural calamities, you must include this coverage right away.
- A regular home insurance policy does not cover special forms of personal property like jewelry, artwork, musical equipment and computers or other electronic gadgets. If you wish to have them included under your home insurance policy, you should talk to your agent about the same.
- While devising your insurance policy, you need to choose between a cash value or a replacement value policy. In the former case, the insurance company will take into account the depreciation value of a commodity. For instance, if a piece of furniture is stolen in a case of robbery, the company will calculate the depreciation and deduct it from its original value. As a result, you won't be compensated for the entire amount. To the contrary, a replacement policy will cover the cost of replacing a commodity irrespective of the depreciation. Under normal circumstances, replacement policies tend to be more expensive than cash value policies.
- If your house undergoes some form of damage and repairs need to be performed, would you want your insurance company to pay for your housing and living expenses during that period of time? Remember to ask your agent about such a clause.
- Finally, there are other features like water back-up in case of a seepage or green home coverage which covers the expenses of using eco-friendly material while re-building or repairing your house.