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Home Insurance Basics

Todays Date: November 15, 2018

The most important and expensive assets for people these days are their homes. Most people want their homes to be secured against all kinds of damages and calamities. Home Insurance is available that provides for damages against all types of losses that home owners may face.

Home insurance can be defined as an agreement between an insurance company and the home owners according to which the insurance company pays a sum of money to the home owners if they face any type of losses. To ensure that the home owners are provided with sufficient money once they face a loss because of any of the calamities that have been mentioned in the contract. In case the home owner suffers a loss to the house because of any other calamity which is not mentioned in the contract, the insurance company does not pay anything to the owner.

Insurance companies must provide adequate amount of insurance. If the insurance companies under insure a home or any other property, the home owner has to face sever losses and many problems.

In return of a home insurance policy, the policy holder has to pay a sum of money called the premium to the insurance company. The amount of premium may differ from one company to another and also depends upon the type of policy being purchased.

There are many kinds of home insurance policies which are available for home owners. Depending upon the needs and requirements, a home owner may select the most feasible policy. Also the home owner must evaluate the advantages and disadvantages of each kind of policy before selecting a policy.

HO-1 is a type of home insurance policy that in addition to providing against losses caused by theft, smoke, fire etc. also provides for losses against eleven types of calamities. HO-2 is a type of policy that provides for losses against 17 types of calamities.

Ho-3 is an Home Insurance policy that covers all losses that have been mentioned in the contract. This policy does not provide for losses caused by floods. Both HO-2 and HO-3 are more expensive as compared to HO-1.

HO-4 and HO-6 are types of insurance policies that do not cover buildings but provide for losses faced by rentals and condos. HO-8 is an insurance policy meant for old homes.

Learn more about Home Insurance. Stop by Jeff Cline’s site where you can find out all about Home Insurance and what it can do for you. Jeff specializes in all types of insurance so give him a try.

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