Comparing Homeowners Coverage

Making decisions about home owners insurance can be easy when you understand the basic structure of the standard homeowners insurance policy. Unlike medical care insurance, home insurance has been standardized. This makes it much easier to compare homeowners insurance contracts.

Most homeowners insurance policies are based on the ISO Homeowners 3 Special Form it is also known as an HO-3. Certain states require certain amendments and there are differences between the different home owners insurance carriers' policies. However, even though there are differences, the policies will be more similar than different so long as the policy is an HO-3 policy.

A Coverage - Dwelling

The A coverage defines how your residence premises and certain attached structures are insured. If you have an attached garage it is included in the A coverage.

B Coverage - Other Structures.

These are structures that are not attached to your residence premises or that are separated by a clear space or are connected only by a fence wall, wire or other similar structure. A detached shed would be covered by this section of the policy.

C Coverage - Personal Property

Personal property includes property that is not considered real property. Property that is attached to the land is considered real property. Property that is attached to real property is also usually considered to be real property.

A built-in air conditioning system will be considered real property. A window unit will be considered personal property.

The personal property section of your policy will cover more than just the property in your home. It will also cover things of yours that is in other locations. However, there are limits and restrictions. Your autos will be specifically excluded. There will be limits on cash. There will be other limitations and restrictions on your homeowners policy.

D Coverage - Loss of Use

Your homeowners policy will likely pay your living expenses if you are unable to stay in your house due to a covered event. You may be able to stay in a furnished apartment while your home is repaired and have those costs covered by your policy.

E Coverage - Personal Liability

A standard HO-3 home owners policy includes liability coverage. This can pay if someone is injured on your property. It can also pay if you accidentally injure someone far away from your property. There are limitations on this coverage, but it probably covers more situations than you realize.

F Coverage Medical Payments to Others

Section F - Medical Payments to Others is similar to the liability coverage section. However legal liability is not required for payments to be made. This section provides limited coverage in situations where an insured person causes an injury to another person. Its purpose is to pay for the small stuff without requiring costly legal red tape. The personal liability section of your policy is there to pay for the larger more costly situations.

House Owners insurance is an important coverage. It covers not only damage to your home, but can also cover damage to your personal possessions, reimburse you for the housing costs while your home is being repaired and can pay others if that you might injure due to a negligent act.

Understanding the basic structure of a home insurance policy can help you to compare policies, since the basic structure of most home insurance policies will be the same regardless of which carrier you make your purchase through.

You can find Iowa home owners insurance quotes on the author's website. Alston J. Balkcom has also written a recent blog post about Insurance Company with disability plans.