how to select a good home insurance plan

are homeless, your living expenses will be covered under property protection as well. Hence this is a kind of a package deal. Damage caused by most disasters is covered in the package with few exceptions. You need to consult your insurance company to ask about any exceptions that may apply in your policy. The major liabilities covered under home insurance are damage floods, earthquakes and poor maintenance. Two different policies for flood and earthquake coverage are required. The value of every house under insurance is usually determined by the value of the home in the property market and the amount for which similar homes in the specific area are worth. The value will differ for different cities or countries, and will be determined differently.

This kind of a policy is usually a term contract and applies for a fixed period of time. A home insurance policy will remain active over a specific period of time, where the policy holder needs to pay premiums to the insurance company. The amount that needs to be paid towards premium will entirely depend upon how susceptible the home is. The more susceptible the home, the higher will be the premiums. There are three types of homeowner’s insurance policies known as HO-1, HO-2 and HO-3. The most common home insurance policies are HO-3, as they tend to cover both the house and its contents.
The typical home owner’s insurance policy is divided into 2 parts –

– I: Home Insurance Property Protection
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