For many individuals, a house will likely be their biggest lifetime financial investment. Protecting this sanctuary from the unexpected is the premise behind homeowners insurance. With reliable coverage in place, repairs and replacement solutions can proceed if property damage, third-party injuries, or other perils occur. Here are several types of policies that are widely available.

What Are the Most Common Homeowners Insurance Plans?

1. Basic

This policy is the most standard and covers the home's interior and exterior structure as well as personal items. If the property sustains damage caused by fire, theft, vandalism, fallen objects such as tree limbs, or hail, lightning and other extreme weather, basic homeowners insurance will pay the recovery costs up to the policy's financial limits and after the deductible has been paid. In addition, coverage may typically extend to liabilities such as paying the medical and legal claim expenses of visitors injured while on the home's premises.

2. Flood

If a home is located in an area that is prone to flooding, the owner will need to secure a separate flood insurance policy. Homeowners insurance does not include damage caused by natural floods. Depending on municipal regulations, properties may be required to have flood insurance. Repair and replacement costs are provided after the policyholder submits a claim and pays the deductible. In some cases, temporary lodging expenses may also be available while the house is being restored. 

3. Replacement

If the home sustains enough damage that the insurance company considers it a total loss, replacement cost coverage compensates the policyholder with the amount needed to rebuild a new house. This includes expenses for materials and labor. Some plans will also provide funding for either the home's value before the total loss or for the most current market value at the time of construction. 

4. Earthquake

While earthquakes are extremely rare in Pennsylvania, it's important to know how most of these policies work. Earthquake insurance, like flood insurance, is a separate policy from basic homeowners coverage. A standard plan will pay for the damages and loss to the entire home, surroundings, and personal belongings. While it is optional in states that are prone to earthquakes, this coverage is highly recommended. For example, California law requires insurance companies to offer add-on earthquake insurance.

When you need help choosing affordable and customized coverage, turn to Kleppinger Insurance LLC in Bethlehem. This independent licensed agency provides homeowners insurance tailored to the unique needs of their clients throughout Pennsylvania, Maryland, and New Jersey. They also partner with some of the nation's leading carriers. For a complementary phone consultation, call (484) 357-1485, or request a no-obligation quote online.