Compare rates among different insurance companies before you purchase homeowners insurance. The rate on premium charged by insurance companies varies in accordance with the type of house, where the house is located, occupation of the individual, and the safety equipment in the house. The home insurance policy is a contract in itself that states the terms of the policy. It contains the exclusions and inclusions that govern the home insurance policy.
The insurance company pays the policy holder in accordance with the loss of contents of a home and the cost required to replace the damaged property. The value of the payout is determined in accordance with the property market, and the price at which similar homes sell. The commonly used insurance forms are:
- Basic form (HO1)Board form (HO2)
- Special Form (HO3)
- Renters Insurance (HO4)
- Premier Policy (HO5)
- Condominium Policy (HO6)
- Older Homes (HO8)
Each form consists of exclusions or inclusions that may, or may not be listed. Some forms may consist of the listed perils that are included, while others may list only the perils that are excluded. The home insurance policy is preferred among most individuals as it is a comprehensive policy that offers coverage on most risks related to home contents and property.