Knowing the basics of home insurance starts with understanding exactly what it is. Most would think that it is common sense. Home insurance covers your home against damage that may happen to it. You of course would be right, partially anyway. It covers more than that. Substantially more than that.

We should first go over the definition of it. Investopedia defines it as a form of property insurance that covers your house, outbuildings, and even the contents found within. There are three main policies that can be offered to you, and a few smaller ones. 

Home Insurance

This type of policy would cover any damage done to your home, or the outbuildings associated with your home. It does not cover any land that the structures are on. You must remember, though, that not every policy will read the same, and they will definitely not cover the same things. For instance, one company may cover floods, while another may not. Flood insurance may not seem important, especially if you live on top of a mountain, but flood insurance will usually cover plumbing problems as well. Even on the highest cliff you could have a pipe burst. A good home insurance policy needs to cover everything that you do not want to have to pay for out of your own pocket. 

Contents Insurance

As you can probably guess, contents insurance is a policy that covers your belongings. It does not cover any of the structures or outbuildings, only materials things that can be replaced. It is understood that some things may not actually be able to be replaced, like heirlooms, but a set dollar amount will be given to help replace the item. You will want to check the cap that is on the policy because if you have any items that are worth a small fortune, you may have to get a separate policy that just covers that one thing. 

Home and Contents Insurance

This is the policy that has iselect, and contents insurance, all wrapped up into one need little package. This is the one that you need to consider getting because it covers everything that you have, inside and out. Unless, of course, you need an extra policy for one or two high valued items. This should include damage by Mother Nature, or by people with bad intentions.

Others

There are a couple of other types of policies that are placed under this type of insurance policy. If you rent or lease a piece of property you will want to get coverage called tenants insurance. This will cover damage or theft up to a set amount. On the other hand, there is landlords’ insurance. This type of policy needs to be in place if you are the property owner and are renting it out to someone. This will insure you against the damage that others do to your property.

Final Thoughts on Home Insurance

There is more to home insurance than you would first expect. It is not something that you spend a little money on, and it covers anything and everything that could happen. Every company will have different ideas on what should be covered under their policies, and how much they are willing to pay out for a claim. Do not ever settle for coverage that does not meet your needs. If one insurance carrier cannot give you the policy that you want, move on to the next one. Your best bet is to use an online comparison site that does all the work for you. It saves time, money, and aggravation caused by finding the policy that you need. 

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