Having an insured property after investing in a home is important. What are the policy coverages, and exclusions forms? To know all the answers, you must understand what homeowners insurance means. The homeowners insurance plan provides some coverage for a home and other personal property of a covered loss.

What does insurance mean?

The insurance plan provides liability coverage when someone hurts themselves at home or causes property damage. The homeowner’s insurance is desired and required by the mortgage company to get protected financially if a home experiences covered loss. The home is one of the biggest investments you can make, which is also one of the largest assets of the family.

The contents of a home are also included, such as:

  • furniture
  • appliances
  • clothing
  • family heirlooms
  • other movable personal belongings

All these represent a substantial additional investment. These are the unprotected loss of a home and its contents:

  • theft
  • fire
  • windstorm
  • some other disaster

Also, everyone faces the threat of personal liability.

What does the homeowner’s insurance may cover?

The standard homeowner’s policy covered the risk of fire. But, in today’s generation, policies provide total protection against several perils of modern life in one package policy. The typical homeowner’s policy provides insurance protection for the following:

  • Home
  • Other structures
  • Personal property
  • Loss of use
  • Personal liability
  • Medical payments


Different forms of homeowner’s insurance policy

Various companies are working with insurance companies to build standardized homeowners policies. The details of the policy may change and these standardized policies or forms are the same. Here are the four types of homeowner’s insurance policy:

  • Broad form policy. The policy covers the following:
  • Home
  • Other structures
  • Personal property

These are the only perils covered by the policy.

  • Special form policy. It covers the following:
    • Home
    • Other structures

These are written on an all-danger basis, with damage from any peril covered.

  • Comprehensive form. The policy covers the following:
    • Home
    • Other structures
    • Personal property

These are all covered on an all-danger basis. The comprehensive form is used for more pricey homes.

  • Modified form. The policy is used with homes where the price to rebuild exceeds the property’s market value. The protection is provided on the mentioned perils. Payment is limited to the actual value of the cash.

Now, if you are a homeowner, you will be interested in these coverages of the homeowner policy, since you want to protect your asset for the beneficiaries waiting.