Home Owner Insurance
Do you know what are the insurance coverage under structural damage? Read on to find out more!

There are four main types of home owner insurance coverage following structural damage. You may be awarded the cash value replacement of the damage, minus a small depreciation allowance. Or you may receive replacement cost without a depreciation deduction but with a maximum dollar limit. You may have extended replacement cost, which will replace your home up to 20% to 30% over the amount insured. The last type of realty insurance is guaranteed replacement cost, which doesn't take a depreciation deduction or set a maximum dollar amount.

When you're looking for home owner's insurance, your primary concerns should be what's covered and what's not covered. The most popular type of policy is the HO-3 "broad-risk" policy. Generally, this policy covers everything except the following: demolition or construction mandates, shockwaves, sinkholes, landslides, mudflows, floods, sewer back-ups, water damage, power failure, neglect, civil war, nuclear hazards, intentional loss, government seizure and loss from faulty repair, construction or zoning. Sometimes home owners can purchase additional options in their coverage but it's important that you know the risks associated with the geographic area when you're looking at houses for sale.

There are many things home owner insurance covers that you may not guess. For instance, if a raccoon, a squirrel, a bear or another wild animal breaks into your house and trashes everything, you're covered. If there is a power outage and you lose all the food in your fridge and freezer, you will generally be covered up to $500 for your loss. Your real estate is usually covered if lightning strikes a power line leading to your house, causing electronic damage, power loss or fire. If an appliance lights on fire or your hot water heater explodes, you're also protected.

Home owner insurance premiums vary from state to state. At best, home ownership insurance premiums can be as low as $477 in Idaho or $490 in Wisconsin. Other relatively inexpensive states that are below $600 include Delaware, Iowa, Maine, Ohio, Oregon and Utah. At worst, insurance premiums can be as high as $1,409 in Texas or $1,386 in Florida. Other expensive areas exceeding $800 include Louisiana, Oklahoma, Rhode Island, South Carolina, Colorado, Connecticut, Kansas, Massachusetts and New York. Countrywide, the average premium is $804. For more information on how your real estate stacks up, check out the National Association of Insurance Commissioners website.

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