Types of Homeowners Policies

Property owner types of insurance policies

A protected hazard (such as fire, burglary, or windstorm) must have caused your loss for damage to your house. What perils your insurance protects depends on the type of insurance you purchase. The most popular homeowner policies are listed below. Except for the dwelling fire form, all insurance forms protect the dwelling and its contents and personal responsibility and medical payments. Read Table 1 to learn the perils of each policy type.

• Dwelling Fire Form protects the dwelling. It does not cover your house, personal responsibility, or medical payments. It also includes a few perils. It's the sort of policy your mortgage lender would purchase for you if you lapse your homeowner's policy. Often used for holiday homes and when you can't find any coverage.

• The Basic Form insures the property against just the Table 1 list of hazards.

• Modified Coverage Form for older homes where rebuilding costs surpass market value. It protects the same range of risks as the primary type.

• The Broad Form insures your property against hazards.

• Special Form is the most common form of homeowners. It ensures your property against all risks, except those explicitly named as not protected. Flood and earthquake are usually omitted.

• The Tenants Form is for renters. It provides insurance for your personal property against all the Broad Form hazards.

• Condominium Unit Owners Form for condominium owner-occupants. It includes insurance for your personal property and walls, floors, and ceilings against all the Large Type hazards.

There are other forms of home insurance. If you own a townhouse, either an individual homeowner's policy or an association master policy will insure it. If you live in a mobile home with wheels and don't rest on blocks or a permanent base, you'll buy a form of car insurance in most states. This insurance provides much less coverage than homeowners. If your home is used for farming or animal husbandry, inquire about a farm owner's scheme.