Home Insurance Basics
Homes are important as well as expensive assets that people possess. For many people, it becomes imperative to secure their homes using a right type of Home Insurance policy because they have spent their hard earned money on possessing their home. Home coverage policies provide for losses and damages to homes that are caused because of calamities.
Home insurance can be defined as an agreement between an insurance company and the home owners according to which the insurance company pays a sum of money to the home owners if they face any type of losses. To ensure that the home owners are provided with sufficient money once they face a loss because of any of the calamities that have been mentioned in the contract. In case the home owner suffers a loss to the house because of any other calamity which is not mentioned in the contract, the insurance company does not pay anything to the owner.
Insurance companies must provide adequate amount of insurance. If the insurance companies under insure a home or any other property, the home owner has to face sever losses and many problems.
When a home owner purchases an insurance policy, he has to pay a specific sum of money to the insurance company. This sum of money is called premium. The rate of premium may be different for different homes and also may vary from company to company.
There are many types of home insurance policies that are available to home owners and these may be selected after considering the benefits and drawbacks of all the policies available. Also one must select a policy that is considered the best and the most feasible.
HO-1 is very commonly used by home owners. This type of a policy provides for losses against eleven types of calamities. These calamities also include theft, smoke, explosion, fire etc. HO-2 is a home insurance policy that covers 17 types of losses.
HO-3 is a Home Insurance policy that covers the insurance of the house against all the calamities that the contract specifies. HO-2 and HO-3 are expensive policies as compared to HO-1 policy.
HO-4 and HO-6 do not provide for losses that buildings face. They are fit for the insurance of rentals and condos. HO-8 is a type of insurance policy that is suitable for old homes. - 23211
Home insurance can be defined as an agreement between an insurance company and the home owners according to which the insurance company pays a sum of money to the home owners if they face any type of losses. To ensure that the home owners are provided with sufficient money once they face a loss because of any of the calamities that have been mentioned in the contract. In case the home owner suffers a loss to the house because of any other calamity which is not mentioned in the contract, the insurance company does not pay anything to the owner.
Insurance companies must provide adequate amount of insurance. If the insurance companies under insure a home or any other property, the home owner has to face sever losses and many problems.
When a home owner purchases an insurance policy, he has to pay a specific sum of money to the insurance company. This sum of money is called premium. The rate of premium may be different for different homes and also may vary from company to company.
There are many types of home insurance policies that are available to home owners and these may be selected after considering the benefits and drawbacks of all the policies available. Also one must select a policy that is considered the best and the most feasible.
HO-1 is very commonly used by home owners. This type of a policy provides for losses against eleven types of calamities. These calamities also include theft, smoke, explosion, fire etc. HO-2 is a home insurance policy that covers 17 types of losses.
HO-3 is a Home Insurance policy that covers the insurance of the house against all the calamities that the contract specifies. HO-2 and HO-3 are expensive policies as compared to HO-1 policy.
HO-4 and HO-6 do not provide for losses that buildings face. They are fit for the insurance of rentals and condos. HO-8 is a type of insurance policy that is suitable for old homes. - 23211
About the Author:
Learn more about Home Insurance. Stop by Jeff Cline's site where you can find out all about Home Insurance and what it can do for you. Jeff specializes in all types of insurance so give him a try.
posted by X - Men @ 1:34 AM
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