Hello, my name is Cliff Bolton. Welcome to my site about vehicle insurance. I wanted to learn all I could about insurance before I started driving to go into the decision-making process with ease. Once I started exploring the insurance industry, however, I could not stop reading. I learned all I needed to know to obtain car insurance and much, much more. I created this site to share this knowledge with my readers. I hope to help others tackle this important decision without worry. Please feel free to drop by daily to learn new information about this important topic. Thank you for visiting my site.
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A home is supposed to provide comfort and shelter. It is the place you need to feel safe. This is why you need to ensure that, no matter what, you will always have somewhere to go back to at the end of the day. Homeowner's insurance exists to assure you of shelter in all circumstances. But, before you purchase home insurance, here are some basics you need to understand.
Types Of Home Insurance
Home insurance is provided in three main policies:
Dwelling Coverage
This is the basis of all home insurance. Dwelling coverage covers the structure of the house from the floors to the roof and built-in appliances. It also covers any structures attached to the house. For instance, if your home has a servant's quarters attached to its side, it is also covered in the policy. Additionally, in case of a total loss, the coverage can help you rebuild your home to the limit provided in the policy.
Personal Liability
This home insurance covers bodily harm. The coverage is not just for the policy owner but also for any person who gets injured inside your home. Besides covering the person, the personal liability policy also covers the damage to property that occurs because of a covered accident.
Contents Coverage
This covers items in the home like clothing and furniture. If an incident occurs, the policy entitles you to get compensated for the value of items lost.
How Much Is Home Insurance?
The average homeowner spends $1,312 annually on home insurance. This translates to an average of $109 per month. Home insurance is treated as a basic. This is why the average household spends 1.91% of its income on home insurance.
More and more people are taking up home insurance, especially in light of recent events. According to NAIC, the national average premium has gone up by 3.3% in the last four years. This figure is drawn from an accumulation of all types of home policies taken.
Home Insurance Based on Types of Homes
Insurance policies differ depending on the size of the house. The National Association of Insurance Commissioners breaks down the homeowner's insurance according to the size and type of home. The policies are represented in codes from HO-1 to HO-8.
HO-1 represents basic coverage that covers your home's structure together with anything attached to it. HO-8 is the policy curated for people who own classic, irreplaceable homes. It covers the dwelling, personal liability, and property as well as medical and living expenses.
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