Homeowners insurance comes in
several different forms, depending on the type of residence
you occupy. You can choose from 6 standard policies in most
cases. For homeowners, look for Forms 1,2,3 and 8. Form 4
provides renters insurance to tenants, while condominium
owners need Form 6. Not every insurance company offers the
same products, however, so be sure to read your policy
carefully before committing.
Form 1
For coverage due to: fire, lightning, wind, hail, vandalism,
malicious mischief, theft, damage from vehicles and
aircraft, explosion, riot or civil commotion, glass
breakage, smoke, volcanic eruption, and personal liability.
Form 2
This coverage offers the same protection listed in Form 1,
but also covers: building collapse, freezing of or
accidental discharge of water or steam from internal
plumbing, heating, air-conditioning systems or domestic
appliances, falling objects, weight of ice, snow or sleet,
rupture or bursting of steam or hot water heating systems,
and personal liability.
Form 3
The Homeowners Special Form, Form 3 covers any direct loss
of physical property, with some exclusions, including:
earthquake and flood damage, damage to or loss of the home
or other structures such as a garage. Coverage listed in
Form 2 for damage or loss to personal property (as well as
personal liability) is also included in Form 3. For a higher
premium you can also add coverage for guns, furs, jewelry,
computers and other goods. This Form is more comprehensive
than the first two.
Form 4
For tenants or cooperative homeowners. This form provides
the same coverage of personal property, personal liability,
and perils as listed in Form 2.
Form 6
For condominium owners to provide coverage for personal
property and liability for their section of the building,
and for the same perils as Form 2.
Form 8
Insurance intended to cover older homes. Often it can be
difficult for homeowners with older dwellings to purchase
standard home insurance. This option is similar to other
policies but theft coverage is limited and loss settlements
are based only on cash value.
When shopping for home insurance, do your homework and try
to find the company and policy that will suit your budget
and provide the coverage you need the most. Flood insurance
isn't always included in home insurance coverage, so you may
have to purchase it separately. Contact an insurance agent
if you want to begin the application process. |
