Types of Homeowners Insurance: Making the Right Choice

Homeowners insurance in the Greensboro and High Point areas can cover a wide range of homeowner needs. In the Piedmont Triad you'll find just about every type of residence – from large estates to single room apartments, mobile homes and single-family dwellings to co-ops and condominiums – and each of these can require a different type of homeowners insurance. Making the right choice regarding which type is best for you will depend on your specific needs, often best determined by consulting with your local, independent insurance agent.

Protecting What May Be Your Most Valuable Asset

While homeowners insurance policies are fairly standard throughout the U.S., different states often have unique versions of different coverages. North Carolina, for example, has a series of HE policies, which stands for Home Enhancement Coverage and are often only sold through independent agencies. North Carolina offers some of the lowest-priced homeowners insurance of any state.

If you live in the home you're insuring you would obviously need a different type of protection than if you're insuring a home you own but rent out. You'd still want good coverage against damage occurring to the home by way of a fire or a severe storm or if someone gets injured and holds you responsible for liability. As a rental, however, you wouldn't necessarily need coverage for personal possessions (unless the home was being rented as furnished).

If you own an apartment or condo unit you need coverage for your unit and possessions, but adjoining or common areas are likely covered in a separate policy. Manufactured or mobile homes have coverage specific to them as would, for example, a houseboat.

Insurance Policy Specifics

The most common and historically most popular homeowners policy is what's called an HO-3. This coverage protects your home from all perils (usually 16) except those specifically excluded. Replacement of your home and/or possessions qualifying as a covered loss is handled in one of three ways, depending on the type of coverage you choose:

1. Actual Cash Value – Replacement of your home and/or possessions minus a depreciation deduction

2. Replacement Cost – Replacement of your home and/or possessions without a depreciation deduction

3. Guaranteed (or Extended) Replacement Cost – Guaranteed replacement cost to rebuild your home to its pre-loss condition even if the amount required exceeds policy limits (up to a stated percentage).

Other popular policies sold here in N.C. include the HE-7 and HE-21, whose features can be viewed here.