Most people don’t realize that there are 7 different homeowners insurance plans that insurance companies can offer. Each plan is different from the other 6 based on the circumstances that it covers. Additionally if consumers are familiar with any of the plans it would be plans that involve parts of option 2 and option 3. You’ll see why as I explain each plan in more detail below.There are many different types of disasters that can affect your home but your standard homeowners insurance policy limits its coverage to 11 specific disaster events.

The final category is damage sustained when a volcano erupts.This standard list can include 6 additional categories of damage protection. They include falling objects, weather related incidents from snow, sleet and ice, electrical surge damage and finally water damage, which can be further broken down into 3 sub-sections of coverage.Home insurance policy 1 covers damage from the 11 different scenarios mentioned above. Policy 2 include plan 1 but goes into greater detail in certain sections. If a tree falls and lands on your house it is covered in this policy section.

You’ll also find protection from a power surge or other damages as a result of electrical problems.Policy 3 includes parts 1 and 2 but includes extended and specialty items. Unfortunately it doesn’t cover damage as a result of flooding. Nor does it cover earthquakes, nuclear blasts and damage caused from a war.For people renting section 4 provides coverage for them and includes the coverage outlined above in plans 1, 2 and 3. Policy 5 offers complete risk coverage for the building and property.

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