Not every home insurance policy is the same.

Cupped hands holding a model of a small home.

Do you know the different options that are available in a home insurance policy? Insurance policies protect our homes and belongings in the case of fire, theft, or natural disaster.  Not every policy protects your property in the same way, and policies vary from state to state among insurance companies. Knowing some insurance industry terms can give you some insight into how your home insurance policy may work.

Covered Property—this broad term covers four types of property: your dwelling, other structures (like a tool shed or pool house), personal property (the stuff inside your home), and loss of use (when your home becomes uninhabitable and you need to live elsewhere).

All Perils, Open Perils, and Named Perils—these terms in an insurance policy refer to a cause of property loss like fire or theft. A named-peril insurance policy protects you from the causes of loss that are specifically listed on the policy. This makes named-peril policy a lot more restrictive than open-peril policies. An open-peril or all-peril policy protects you from the loss except from those causes explicitly listed in the policy.

Dwelling or Homeowner—these two types of policies do different things to protect you from loss. A dwelling policy typically covers a policyholder for the structure and its contents on a named-peril basis only, while a homeowner’s policy usually covers the structure on an all-peril basis and its contents on a named-peril basis.

Package or Peril—when referring to an insurance policy, a package policy covers many but not every peril that might cause a loss. A homeowner’s policy is a type of package policy. Flood insurance or earthquake insurance are types of peril insurance that extend coverage to events that may cause loss and are not covered by the homeowner’s policy.

Am I covered?

For many types of occurrences that can cause property loss, a typical homeowner’s policy will cover damage from hail, hurricanes (except floods), tornadoes and wind storms, and wildfires. Earthquake insurance and flood insurance are usually separate policies that provide loss coverage beyond the standard policy.

The Luis Guerra Agency in Yorktown Heights, NY has more insurance options at a lower price than anyone else in the area. We know that you want a local agent who will treat you like an individual instead of just another paycheck. From your very first meeting with us, you will know that insuring your home and valuable property with us is the perfect way to keep your family safe. Do not put off purchasing home insurance any longer. Reach out to one of our friendly Luis Guerra Agency team members today and start protecting your investments from peril.