Insurance companies several forms of home insurance policies. Some homeowners are not aware that their policies only cover perils included in the agreements. If you need protection against specific perils, you must buy the type of policy that offers protections for them.
The different forms of home insurance coverages include dwelling fire form, basic form, modified coverage form, broad form, special form, tenants form and condominium unit owners form.
Dwelling fire form offers coverage for the dwelling place. It does not offer coverage for your property belongings, medical costs, lawsuit fees and etc. It offers protection against perils that cause your property to become on fire and civil fight.
Basic form provides coverage against fire related damages, theft and vandalism. Modified coverage form offers the same protection as basic form. Modified coverage form is suitable for old homes that have higher rebuild cost compare to the value in market. Broad form offers protection against fire perils, theft, heavy falling objects, weight of ice, rupturing of plumbing, and air conditioning system.
Special form offers protection against all the perils including fire, smoke, lightning, freezing, nuclear accidents, tress, weight of ice, theft, vandalism and etc. However, special form home insurance does not provide coverage against natural perils such as flood, war and earthquake.
Tenants form provides coverage for rented homes. If you are a tenant, you can apply for tenants form insurance policy. Tenants form offers similar protections with broad form.
Condominium unit owners form offers protection for condominiums. If you are living in a condominium, you must buy the condominium unit owners’ home insurance.
