Whether you’re buying your first homeowners insurance policy or wanting to update your current policy, knowing the basics of home insurance coverage is key. Before you can make an informed decision, you should be familiar with the different types of home insurance available to you. A standard homeowners insurance policy includes the following coverages: However, dwelling coverage does not cover everything, no matter what your policy limits are. For this reason, it’s a good idea to customize your policy by having additional coverages to suit your specific situation. We’ve outlined our optional, add-on coverages below to help you understand what each one covers. Flood insurance protects your house and belongings from flood-related damages. It is a separate policy with its own deductible. If you live in a state or area that is prone to flooding, this coverage is a good idea and may even be required depending on your location. Earthquake insurance covers your home in the event of damages caused by an earthquake. This policy also has its own deductible. Replacement cost plus is an extra level of protection that can provide additional coverage to rebuild your home after a total loss. If you have owned your property for an extended period of time and are concerned about depreciation, taking out additional replacement cost coverage may be a good idea. Water backup of sewer protects your home in the event of sewer or drain backup, which is an unfortunate but common issue faced by homeowners. Other structures insurance covers property that is unattached to your home, such as a gazebo, shed or unattached garage. If you have any of these structures on your property, it’s a good idea to insure them to avoid the risk of paying out of pocket if an accident occurs. Personal umbrella liability insurance provides additional coverage for bodily injury, property damage and personal injury to others – beyond the policy limits outlined in your main homeowners policy. Medical payments coverage may provide payment for a medical expense resulting from an accident on the customer’s property. This coverage is intended for the immediate medical treatment of guests on the customers’ premises, without determining fault. Ordinance or law insurance kicks in if you need to rebuild your house to fit current building codes after a covered loss. It can be a smart choice if you have an older home. Valuables Plus® is a unique Nationwide coverage that provides an extra level of protection for your high-value items such as jewelry, antiques and fine art in the event of a covered incident. Brand New Belongings® is an optional, add-on endorsem*nt that can provide funds to repair or replace certain belongings in the aftermath of a covered loss, without a deduction for deterioration and depreciation. Better Roof Replacement® is an optional coverage that can help you rebuild your roof to be stronger and safer after a covered loss. Your homeowners insurance should be unique to your home and your needs. To learn more about what home insurance policies cover, call a Nationwide professional today at 1-877-On Your Side (1-877-669-6877) or start a home insurance quote online today.
Optional home insurance coverages:
FAQs
What are the three main types of homeowners insurance? ›
Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.
What are the 7 main types of insurance? ›- General Insurance. Following are the various types of general insurance in India: Health Insurance. Motor Insurance. Home Insurance. Fire Insurance. ...
- Life Insurance. Following are several types of life insurance available in India: Term insurance. Term insurance with return of premium. Unit Linked Insurance Plans.
Coverage A — Dwelling. Coverage B — Other Structures. Coverage C — Personal Property. Coverage D — Loss of Use.
What are the 3 main types of insurance coverage? ›There are many types of health coverage such as PPOs, EPOs and HMOs. Each one is a little different.
What is the most popular type of home insurance? ›What Is an HO-3 Home Insurance Policy? The HO-3 policy provides suitable coverage for most homeowners and is the most common home insurance policy type. It covers your house and belongings and includes coverage for liability, medical payments to others and additional living expenses.
What is the most basic homeowner policy called? ›HO-1 Basic Form Policy: The HO-1 policy is the most basic and limited homeowner insurance option. It provides coverage for a specific list of perils, such as fire, lightning, hail, theft, and vandalism.
What is the most complete homeowners insurance policy coverage called? ›HO-5 (comprehensive form)
The HO-5 policy offers more protection than any other type of homeowners insurance. Personal property losses are repaid based on the replacement cost for the item, instead of the actual cash value. You'll have higher coverage limits and less restrictions on perils.
Most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available and, increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of liability coverage.
Which two are not usually covered by homeowners insurance? ›Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered.
What is the best type of insurance to have? ›Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have. Employer coverage is often the best option, but if that is unavailable, obtain quotes from several providers as many provide discounts if you purchase more than one type of coverage.
What are the three most common kinds of property insurance? ›
The three types of property insurance coverage are replacement cost, actual cash value, and extended replacement costs.
What is the most common type of coverage? ›The most common types of insurance coverage include auto insurance, life insurance and homeowners insurance. Insurance coverage helps consumers recover financially from unexpected events, such as car accidents or the loss of an income-producing adult supporting a family.
What is the difference between HO3 and ho4? ›For regular homeowners, HO-1 and HO-2 are named-peril policies, while the HO-3 is the all-perils policy. The HO-4 covers apartment renters, but condo owners are best served by an HO-6. Mobile homes are covered under the HO-7, but only when they're stationary; motor homes aren't covered.
What is the difference between HO1, HO2, and HO3? ›HO1 Policy – Basic Coverage: This covers an owner-occupied standalone home against 10 named perils. HO2 Policy – Broad Coverage: This can cover the home against 16 named perils. HO3 Policy – Special Coverage: This is the most common type of homeowners insurance.
What is the difference between an HO3 and HO6 policy? ›What's the difference between HO3 and HO6? The main difference between an HO3 policy for a single-family home and an HO6 condo insurance policy is that while an HO3 covers the physical structure of your home itself, an HO6 policy only covers what's inside the walls of your condo.