When you’re shopping for Illinois homeowners insurance, it pays to know the difference between one form of coverage and another. Few consumers actually read all the fine print on their insurance form after they receive it, and even fewer read all the terms and conditions before signing on the dotted line. That’s unfortunate, because if you understand the terms being proposed on your homeowners insurance policy, you can ask for it to be more closely tailored to your own particular needs, and the needs of your family. Here’s a short list of important terms to understand when reviewing Illinois homeowners insurance quotes.
Dwelling Fire Form
This is the most basic form of Illinois homeowners insurance policy from someone like this. It only protects you against loss of the home itself. If you lose your personal possessions, have medical bills, or incur a personal liability, you won’t have coverage. When a homeowner lets the insurance lapse on a mortgaged dwelling, this is the type of insurance that the lender takes out on the property to protect the value of the mortgage on the house. Some Illinois consumers use this form of coverage for vacation homes, or as a last resort when other, more comprehensive forms of Illinois homeowners insurance aren’t available.
This is slightly more comprehensive coverage than Dwelling Fire Form. In addition to fire and smoke coverage, it also covers theft, vandalism, and a few other perils.
This policy offers the same coverage as the basic form, but it’s specially tailored to older homes that would have a higher cost to rebuild than the house would be worth if it was sold on the open market.
Broad Insurance Form
In addition to all the coverage offered by Basic Form policies, Broad Form coverage includes falling trees, damage from ice, snow, and freezing temperatures, and problems with appliances or internal utility systems that cause damage.
This is the most common Illinois homeowners insurance policy issued. It covers all of the perils mentioned in all the other forms, then adds coverage for every other hazard except floods, wars, and earthquakes. Many homeowners take advantage of Special Form coverage, but add certain exclusions that make the policy more affordable. These exclusions are for coverage that doesn’t apply to the home, so they save money without increasing the risk of a loss.
In addition to these types of homeowners insurance, Illinois insurance agents have specially tailored policies for the owners of condominiums, and for consumers who rent a home or an apartment.