Types of Homeowners Insurance

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

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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.

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