Types of CoverageThere are three main types of home insurance coverage that you can avail as a homeowner. Actual cash coverage is the first type of coverage. It will cover the value of your house and your personal belongings after their value has been depreciated. Secondly we have the replacement cost coverage. In this type of coverage you are paid the actual cash value of your property and belongings without including any depreciation. The last type of coverage that you can get is known as guaranteed replacement cost coverage. This coverage also has the highest premium of the three but it pays for any sort of damage to your home even if it exceeds the policy limit.
ConclusionNow that you know the few basic components of home insurance it’s time to go out and select a reputable and well known insurance company. You should shop around and not just go for the very first company that you come across. Compare rates and service quality of each company before making any decision.