Just like other types of insurance coverage, home insurance also offer different types of protection or coverage. Depending on your needs and wants, you can actually combine different types of coverage and get the maximum level of protection you need. In this part, we are going to take a look at different types of home insurance coverage to help you get started in no time.
Replacement cost coverage is the basic coverage offered by home insurance. There are two types of calculation methods used: guaranteed replacement cost and extended replacement cost. Guaranteed replacement cost coverage will pay for the cost of rebuilding your property once all the terms are met. Extended replacement cost coverage, on the other hand, adds additional 25% to accommodate possible run-over in construction costs.
Next, we have the scheduled personal property coverage. This type of coverage is perfect for those of you who live in the property you are insuring. The coverage protects jewelry, furs, stamps, coins, guns, computers, antiques, and other personal belongings that are not covered by basic replacement cost coverage.
You can also have theft coverage as part of your home insurance. Although the basic theft protection is included in every home insurance, adding theft coverage will extend the coverage to personal contents stored in vehicles without proof of forcible entry.
Next, we have inflation guard. Inflation guard is a home insurance coverage designed to help increase the amount of coverage to keep up with inflation in general. With inflation guard in force, the replacement cost coverage will always be sufficient for rebuilding your house.
