A property owner can obtain insurance to protect against damage or loss to real estate as well as to the personal property that may be located on that real estate. The typical types of insurance that are available to protect an insured against direct loss to the property include homeowner's insurance, fire and catastrophe insurance, and consequential loss insurance.

Homeowner's Insurance

Homeowner's insurance is a comprehensive form of insurance that offers liability protection if bodily injury occurs on the premises due to an accident as well as protection against losses that are caused to the home and/or its contents. Although homeowner's insurance offers broad coverage, the policy itself may be limited to fire and extended coverage, it may be expanded to include specific additional risks, or it may be all-risk coverage. In all cases, the actual provisions of the policy determine the extent of the protection provided.

Fire and Catastrophe Insurance

Fire insurance coverage is usually included as part of a general property insurance policy. Fire insurance provides additional coverage to protect against direct losses to the property that are caused by fire and/or lightning. Some policies will also cover smoke damage if the smoke comes from a fire that did not originate in the covered premises. For instance, if a neighbor's house catches on fire, smoke damage to the insured's home would be covered under the insured's homeowner's policy.

Additional coverage for storms, hail, earthquakes, floods, falling trees, vandalism and the like may be obtained by a rider or an extended coverage endorsement to a homeowner's policy or a fire insurance policy. This added coverage may not be available in all areas, but when it is available, an additional or increased premium will be charged.

Floater for Risk Coverage

Typically, homeowner's insurance provides coverage up to a certain limit for personal property that is located on the premises. In the event that the homeowner's personal property includes antique furniture or jewelry, firearms, other valuable jewelry, furs, or artwork, the homeowner can obtain coverage to protect those items with a floater. Floaters are attached to the basic homeowner's policy and include a specific description, value, and sometimes a photograph of the special property to be insured. As with most insurance, the availability and amount of coverage depends on state law and the insured's pocket book.

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