The Basic Home Insurance Policy

A Insurance Article Contributed by Deepak Cutting

Insurance of Your Home

A major part of your earnings could go into acquiring and furnishing your home and home insurance is therefore the obvious way to protect your primary investment from any unforeseen damage. The kind of home insurance you pick will depend on the kind of protection that you feel necessary. A good understanding of home insurance will help you ward off financial misfortune. Here is an insurance policy that combines insurance on the home, its contents, and, often, the other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

A basic home policy covers risks like fire, theft, lightning, explosion and so on. In such a policy the risk not specifically mentioned on the policy is not covered. Some home insurance companies provide special policies that cover all perils to your home unless specifically excluded. If a loan is obtained for construction or acquisition of your home, the lending agency will insist on a valid home insurance policy as long as the loan remains outstanding.

The Usual Exclusions in Home Insurance

A typical bare home insurance policy covers your residence, attached/built-in garage, includes structures you own that are not attached to the house, such as storage sheds, fences and barns. Motor vehicles such as your lawn mower or motorized wheelchair are covered, but your automobile must be covered by a separate auto insurance policy.

The usual exclusions are as follows:

· Earthquake, except when specifically covered.

· Floods.

· Pet Damage.

· Damage by birds, rodents, and insects.

· Pollution damage.

· Water damage resulting from flood or sewer backup, except when such damage is expressly covered.

· Deliberate damage done to your or someone else's property.

· Normal wear and tear.

· War.

Other exclusions would include:

· Damage that is a liability of tenants.

· Lighting damage to trees etc.

· Debris removal expenses.

Enlargement of Scope of Home Insurance Policy

When the home insurance policy is enlarged to include personal property, items such as televisions, music equipment and furniture etc., also get covered. The scope of this policy can be further enlarged to include additional expenses such as hotel expenses if you have to move out to permit repairs to your house to be completed.

Basic liability insurance is an insurance policy that combines insurance on the home, its contents, and, often, the other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home. The exclusions in this case are damage done intentionally or losses that can be attributed to your business activities. You can further enlarge the scope of your package by purchasing additional coverage, such as:

· Jewelry

· Earthquake

· Flood (must be purchased separately), and,

· Reasonable repairs to prevent a further loss.

All the above-mentioned additional provisions are available at an extra premium. A careful examination of the various provisions and exclusions is called for, to arrive at a home insurance policy that suits both your needs as also your pocket.