Home Insurance 101

Purchasing a new home or searching for a new insurance policy to cover your existing one can be challenging. Each insurance provider is different and every insurance agent has a different way of explaining insurance coverage. First and foremost, home insurance is mandatory when using a mortgage loan to purchase a home so purchasing insurance coverage is something almost every homeowner must do however this type of insurance is extremely important as it provides protection to cover damage to your home and injuries to others caused by your property.

Of course, like any good insurance policy, there are many exceptions to a standard homeowners insurance policy so many homeowners tend to require several different types of policy to ensure maximum insurance coverage. Typical homeowner policies cover damage to your property with exceptions of damage caused by such events as earthquakes, floods and yes, poor maintenance. Maintenance is usually the homeowners responsibility but usually you will have a chance to purchase separate policies or insurance riders for earthquakes and floods for an additional premium.

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Home Insurance Policy Types

Basic Homeowner Insurance

Most homeowners have a basic homeowners insurance policy which provides coverage personal property loss. This insurance coverage is many times not just for damage directly to the physical structure of your house but also used in times when personal liability is attached to certain events in your life under terms which the insurance policy covers.

Flood Insurance

Flood insurance is mandatory in many areas of the country. Whenever a home is designated as being in a Flood Zone according to county maps your mortgage lender will require additional Flood insurance since the typical homeowners insurance policy excludes coverage from Floods. It is an additional policy and an additional expense although like any good insurance policy is well worth its cost should the need arrive to submit a claim.

Wind Insurance

Wind Insurance is more or less coverage for natural events where winds above normal levels directly damage your home. South Florida would be a great example where hurricanes typically hammer coastal homes a couple times a year. Since the standard homeowners insurance policy will exclude coverage for hurricanes your wind insurance policy will take effect and your family will have insurance coverage for any damage to the home (of course, this coverage is limited to the policy limits but its better than having no coverage)

>> Get Home Insurance Rates by ZIP Code - All 50 States

Purchasing a new home or searching for a new insurance policy to cover your existing one can be challenging. Each insurance provider is different and every insurance agent has a different way of explaining insurance coverage. First and foremost, home insurance is mandatory when using a mortgage loan to purchase a home so purchasing insurance coverage is something almost every homeowner must do however this type of insurance is extremely important as it provides protection to cover damage to your home and injuries to others caused by your property.

Of course, like any good insurance policy, there are many exceptions to a standard homeowners insurance policy so many homeowners tend to require several different types of policy to ensure maximum insurance coverage. Typical homeowner policies cover damage to your property with exceptions of damage caused by such events as earthquakes, floods and yes, poor maintenance. Maintenance is usually the homeowner's responsibility but usually you will have a chance to purchase separate policies or insurance riders for earthquakes and floods for an additional premium.

Learn more about all the different home insurance policies here