The 7 Home Insurance Policy Types You Need to Know

Posted by Pekin Insurance on Aug 21, 2017

There are different home insurance policy types? Yes, and here's what you'll want to know about them.

Home insurance. It seems like a one and done, but is it? You have the policy you bought years ago when you bought your house, and it's been fine, right? In fact, you didn't even realize there were different home insurance policy types.

It's understandable, especially if you own a condo or mobile home. For that matter, renters insurance is a type of home insurance policy since it covers many of the same things that a homeowners policy does.

There are subtle differences, however, between the policies, and you can add additional coverage through enhancements for special collections, expensive jewelry, and other high-value belongings. So what policy is right for you? Here's a short primer on different home insurance policy types and how to make the most of them. 


7 Home Insurance Policy Types

1. Renters insurance
Renters insurance covers your personal belongings and additional living expenses in the event of theft or disaster. Contrary to popular belief, the landlord's property insurance does not cover any losses to renters; it only covers the actual property. 

For truly comprehensive coverage, Pekin Insurance offers a Deluxe Endorsement that includes coverages for identity theft, liability, water back-up damage, and even the food in your refrigerator. Best of all, renters insurance is about the same cost as a few cups of coffee each month. 

2. Mobile home insurance
Mobile and manufactured homes have unique properties. It stands to reason, then, that insurance should match those unique needs. Along with the expected coverages, like liability, structural damage, and personal belongings, Pekin Insurance also offers a Deluxe Endorsement for mobile homes.

This endorsement covers equipment breakdown (air conditioners, water heaters, and more), identity theft, and tree and shrub removal from storms. You can also get coverage for dog and cat protection and your wastewater line. 

3. Condo insurance
If you live in a condo, you probably have a condo association insurance policy. Those policies, however, only cover community-owned property and liability insurance for the grounds.

Enhancements for condos include coverage for medical bills and coverage for your personal belongings even when they aren't in your condo. When you purchase condo insurance, it's a good idea to bring your association's insurance policy with you to talk with an agent. You want to ensure you have the coverage you need without gaps between the two policies. 

4. Home insurance
Hail damage? Water heater flooded your basement? Someone stole your laptop? You're covered. Like the previous home insurance policy types, home insurance covers catastrophic damage, as well as events like theft, broken windows, and vandalism.

5. Flood insurance
Flood insurance covers damage to your property from flood waters beyond what most homeowners insurance policies cover. The Federal Emergency Management Agency administers flood insurance, but you must purchase it through an insurance agent.

6. Umbrella policy
An umbrella policy offers additional coverage above and beyond your regular home insurance. In addition to providing coverage beyond your home insurance limits, an umbrella policy will cover you for libel or slander and protects you in the event of a lawsuit.

7. Coverage enhancements
Coverage enhancements are add-ons to your basic home insurance policies. Enhancements include covering you for the replacement cost of your home and belongs, including special equipment like cameras, a baseball card collection, or refrigerated goods.



How to Save on a Home Insurance Policy

This may sound like you're looking for a blend of any number of policies, but there are a lot of ways to save money on a premium policy package. Pekin Insurance has discounts available for a combined home and auto policy, burglar alarms, automatic sprinkler systems, and newly constructed homes. Mature homeowners age 52 and older are eligible for a home insurance discount at Pekin Insurance, too. It's also worth reviewing your coverage on a yearly basis. You may be able to reduce coverage on some policy enhancements, for instance, if you've sold a large collection.

The best way to find discounts and savings for a home insurance policy is to talk to a Pekin Insurance agent. Give your local Pekin Insurance agent a call today so you can get the coverage you need.



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