The Best Type Of Homeowner Insurance

Choosing what type of homeowner insurance that is best for you can be tricky. Knowing what types of insurance are available in the market will help you in determining what you need.

Types of Home Owner Insurance

Basic home insurance protects your properties from fire, water damage, and vandalism. A separate insurance is added for other protections like earthquake and other natural disasters as well as other unforeseen accidents. For condominiums and mobile homes, insurance companies provide you a more specialized type of insurance that would fit the type of home that you have.

There is another type of insurance that will provide you further protection against ownership claims. This is called Title Insurance and is usually required in obtaining a property. If the previous owner used the property as collateral for another loan and did not say so when you purchased the property, you will not be held liable for such circumstances.

If you finance more than 80% of the total purchase price, Private Mortgage Interest (PMI) is another type of home owner insurance which makes the lender the beneficiary of the insurance in the event you are unable to pay the full mortgage amount.

Making the Choice

Although PMI is not as versatile, basic insurance coverage gives you a wide range of options. You have to consider many things that would help you make the most of your policy. Here are some of those things:

Flood or earthquake insurance

If you are in an area that is prone to flood, landslides, earthquakes, hurricanes or other calamities, it is always wise to get extra coverage for these possible events. Although government help could be on the way, being prepared in your own way will help alleviate the impact of the disaster.

Valuable Jewelries and collections

These items are not covered by your basic policy. It is important then, that you obtain additional coverage for such belongings. The total amount may not be fully reimbursed but you can get at least a partial amount. The insurer will likely ask for a rider request letter once you file for a claim.

Liability Coverage

If you have dogs, a swimming pool, trampoline or other items that will increase your liability, you can also expand the extent of your coverage to make sure you will still be protected.

Whichever coverage you may choose, also keep in mind to read it through with your insurance agent and your lawyer if you have doubts. Ask around and carefully make the decisions to make the most of your insurance policy.

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