What types of homeowners insurance are available?
Traditional Homeowners Policy: A traditional—or standard—homeowners policy includes four types of coverage:
coverage for the structure of your home
coverage for your personal belongings
additional living expenses in the event of disaster
liability protection
Standard homeowners insurance usually covers fire or lightning; windstorm or hail; explosions; riot or civil commotion; aircraft; vehicles; smoke; theft or vandalism; falling objects; weight of ice, snow, or sleet; and freezing of a plumbing, heating, air conditioning, or other system.
Renters policy: Renters insurance provides the same kind of general personal property coverage and liability protection as a homeowners policy. Unless you can afford to replace all of your personal belongings in the event of a disaster, you should purchase a renters policy. A renters policy will also protect you in the event you damage or destroy the landlord’s building. Without renters insurance, you could be held liable for the total loss. Renters insurance is reasonably priced and should not be overlooked by anyone who is serious about protecting their assets.
Condominium owners policy: A condominium owners policy protects the inside of the condominium unit as well as what is inside the unit. The condominium association should provide structural insurance to protect the actual building, which is considered common property.
Disaster insurance (flood, earthquake, etc.): Standard homeowners insurance does not cover floods, earthquakes, and some other natural disasters. If you live in a designated flood zone, you will be required to purchase flood insurance. There may be other reasons you need flood insurance-for example, to protect you from unexpected overflow water from streams. You can purchase flood insurance directly from your insurance agent, but the policy is actually provided by the Federal Flood Insurance Program. You can purchase earthquake insurance either as a separate policy or as an endorsement to your standard homeowners or renters policy.
Source: militaryfinance.umuc.edu
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