Understanding Home Insurance Policy Types | Square One

Whether you’re a homeowner or a renter,
whether you’ve just bought a vacation home or a rental property, you’ll want to make
sure your insurance covers what you think it does. Types of policies include comprehensive
(also referred to as all-risk), named perils and broad form. Each offers protection for
different types of losses and some policies restrict the amount of coverage. As a general
rule of thumb, comprehensive policies provide the best protection and should be your first
choice. So, make sure you understand the differences. Some insurance companies offer basic coverage
for water and ask you to pay extra to purchase broader coverage. Most companies charge an
additional premium to add on protection for earthquakes. Make sure you understand just
what types of losses are covered.

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