Types of Homeowner's Insurance

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What Is Homeowner's Insurance?

Homeowner's insurance is a type of property insurance that covers damage to your home, its contents, and its inhabitants. It is possessed by almost every homeowner, because all banks require some form of homeowner's insurance before they will finance a mortgage. So while it is not legally necessary to have, it is necessary for anyone who is not able to purchase a house in one payment (which is certainly most people).

What Are the Different Types of Homeowner's Insurance?

The exact amounts of coverage purchased will of course differ depending on location and the cost of your home. The policies are always capped, meaning they won't pay damages past a certain amount, but the cap is adjustable by you, the consumer. The 8 standard policies are:

Why Do I Need an Attorney?

Generally, since most banks will require you buy HO-3 insurance when you start your mortgage, an attorney isn't necessary in the choosing of your insurance plan. When an attorney becomes useful is when you actually file a claim. Many insurance companies, it has been found, automatically (and sometimes illegally) refuse to pay any claim the first time it is submitted, in hopes that this will "deter" people from making false claims. That means that you may have a perfectly legitimate claim to your insurance payment, and are still refused, or asked to provide overly-extensive evidence.  

If you believe that your policy covers the damage suffered, and your claim is refused or contested, you should consult an insurance attorney or a real estate attorney immediately, who can help you not only get your money, but sometimes sue the company for falsely denying your claim in the first place. There is nothing that makes an insurance company cave-in faster than an a call from a lawyer threatening to sue, so contact an attorney to help you with your claim today.

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Last Modified: 06-05-2014 03:39 PM PDT

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