Here are the Main Types of Home Insurance Coverage Available in 2020

Whether you’ve just purchased your new home and you want to shop for the best type of home insurance coverage for your needs, or you’re simply looking to update your existing policy, it’s imperative to become aware of the main types of home insurance available to you.

Before making an informed decision, you want to be familiar with all the types of home insurance available in 2020. While you have a few types of standard insurance, you also have dozens of optional insurance coverages you can choose for your home.

Without further ado, let’s look at the main types of home insurance coverage for you.

Standard Insurance Policies

1. Contents coverage: first of all, you can insure the items in your home, such as furniture, belongings, appliances and clothing items. In case a fire, flood, or even a thief decides to wreak havoc in your home, you’ll receive a fair share of compensation.

2. Dwelling coverage: another type of main coverage you can get in 2020 is dwelling coverage. With this coverage, you can protect the structure of your home against a wide variety of perils, such as fires, theft, hail and vandalism. With the money you get, you’ll be able to rebuild your home’s floors, walls, built-in appliances, and any attached structure that was affected by the calamity.

3. Personal liability: you’ve probably heard of this type of insurance before, but you were not aware that it’s part of home insurance. You can insure your body against accidents that happen on your property. You can also use personal liability insurance to stay protected against claims from your guests or workers who sustain injuries on your property.

Optional Home Insurance Coverage

1. Water backup insurance: you can protect your home in case of a drain or sewer backup. This is quite a common incident homeowners have to face, so it’s wise to stay protected against this type of incident.

2. Flood insurance: if you live in an area that is prone to floods all throughout the year, you definitely need this insurance. This is a separate policy from the standard dwelling or contents coverage that offers you a larger number of benefits.

3. Earthquake coverage: this optional coverage becomes mandatory if you live in areas where there is high seismic activity. California and Nevada are just two examples. Just like flood insurance, this policy comes with its own deductible.

4. Replacement cost: this is an optional coverage that offers you even more benefits should you need to rebuild your home. In case you have owned your home for a long period of time and you factor in depreciation, the replacement cost home insurance is a smart move from your part.

5. Valuables plus: this is an advanced level of insurance that protects your valuables, such as jewelry, fine art or antiques. This is a type of policy that almost all millionaires and billionaires have, probably excluding super-rich people who can always afford to buy new jewelry or prefer to invest in million-dollar cars.