Most insurance companies offer a variety of homeowner policies and many have a special name for each. We prefer to think of homeowner policies in simpler terms:
GOOD, BETTER, BEST.
GOOD
A policy that provides "named peril" coverages on buildings and contents. A Named Peril wording lists the coverages such as fire, smoke, windstorm, explosion, etc.
BETTER
A policy that provides "all risk" coverages on buildings and "named perils" on contents. An "all risk" wording covers all risks except those specifically excluded in the wording.
BEST
A policy that provides "all risk" coverages on buildings and contents.
Buyer's Tip: The "best" policy is often the same or less premium than the "good" or "better" policy when you increase the deductible from $300 to $500.
Other Property
Cottages, rental properties, boats, trailers, houses, jet skis, etc. can usually be insured with a homeowner or tenant policy. Each special property may have its own terms and conditions. Your insurance broker is the best source of advice to insure special property.
Some Terminology Explanations
Replacement Cost - In the event of loss the insurance company agrees to replace or repair the damaged property on a new for old basis, that is with no deduction for depreciation. Replacement cost is generally available for home and contents.
Guaranteed Replacement Cost - Some insurers agree to pay to rebuild your home even if the cost exceeds the amount shown on your policy. There are some conditions, including that you agree to insure for 100% of the estimated replacement cost.
