7 Types of home owner’s insurance you need to know about

This week’s article was contributed by John L. Bradfield, and originally appeared on his blog “This ‘n That”. John is a Real Estate professional with 20 years’ experience in this industry. He is based in Hermanus, the whale-watching capital of the world.


If you own a home or are thinking of buying one, home owner’s insurance is a necessary evil and can even save your investment one day. But there are many different types of policies out there that can be confusing to the average home owner.

Below, are seven different kinds of home owner’s insurance to help you make sense of it all.

1. Basic
The liability coverage of the home owning insurance world is the basic. This type of policy covers only the basics but includes items such as fire, wind-storms, theft, and even volcanic eruption.

2. Broad
This insurance policy covers everything in the above, plus a few more. It adds on coverage for issues such as snow, plumbing damage, and even damage caused by faulty electrical wiring.

3. Special
More common than the above, special policies allow the home owner to choose the kind of coverage they want. For example, someone on the West Coast isn’t terribly interested in hurricane coverage, while someone on the East isn’t too concerned with earthquake damage.

4. No replacement
Those who have older homes that just aren’t built that way any more can be subject to this type of insurance. While it can cover all the perils of other home owner’s insurance, it pays for the cost of your home minus whatever depreciation it has incurred instead of having it rebuilt the way it was.

5. Condo
If you own a condominium in a complex, it doesn’t make sense to have the outside of your home insured. However, everything on the inside is still subject to damage right down to the appliances. This kind of policy covers personal property and can also be tailored to fit the needs of the individual.

6. Town-house
Somewhere between the traditional home and condo is the town-house. While owners of town-houses also need to insure the outside of their homes, insurance needs are different because town-house owners are also usually part of a complex.

7. Renter
Even if you don’t own a home, insurance is still an important option to consider. For example, someone renting an apartment that gets flooded will have their landlord footing the bill for damage to the unit. However, the renter will not be covered for any furniture, electronics and other items that may have been damaged in the flood unless they have renter’s insurance that covers it.

For more information or an obligation-free quote, get in touch with BetterSure.


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