Homeowner’s insurance comes in several different kinds so that it will easily fit the needs of various homeowners. Different kinds of homes or situations mean that different options need to be available. Here is an overview your homeowner’s insurance options.
HO-1
This is the original form of homeowner’s insurance. It covers the homeowner against 11 types of damage. This includes: fire and lightning, smoke, theft, vandalism, vehicle, volcanic eruptions, wind and hail, aircraft, explosions, riots, and damage from a building falling onto itself.
HO-2
This home owner insurance policy covers everything in HO-1, plus an expanded coverage. It adds: accidental discharge (or from freezing) of water or steam from heating, plumbing, and air conditioning, falling objects, weight of water, snow or ice, and damage from bursting pipes in a hot water heating system. Electrical discharges are also included.
HO-3
This version of a home insurance policy is designed to cover all insurance needs including liability. It includes all issues from HO-1 and HO-2. It does not include, however, coverage for floods, earthquakes and hurricanes. Some other specific situations may not be covered but they will have to be clearly indicated.
HO-4
Typically known as renters insurance, it provides coverage for all the items in HO-1 and HO-2. There is also liability coverage for guests, medical coverage, and some additional living expense coverage, too. It does not include any property damage.
HO-5
This home owner insurance policy type covers the same thing as an HO-3, but offers a wider coverage. It offers the widest possible coverage and includes about 15% more than what a HO-3 covers. It may also include things not covered by other home insurance policies normally, like art, jewelry, antiques and more. Because it is a package deal, it may be less expensive to buy this one, than it would to buy a basic policy and add a bunch of riders to it.
HO-6
This coverage is designed for condominium owners. It provides protection for the content within the walls of the condo, and for attached furnishings. Damage from fire, water, and smoke are covered, as well as offering liability within a distance of 150 feet. Its purpose is to provide coverage for things not provided for by the insurance policy of the condominium association.
HO-8
This policy is designed for the older home that may have some historic value. The home insurance policy only covers the repair value or the cash value – but not the replacement value. Replacement values could easily end up more than market value. It covers the basic 11 possible disasters of a HO-1.
Each of these numbers and the terms for them may vary slightly from one state and insurer to another. You will need to read the fine print to learn more precisely what is being covered by a particular home insurance policy.
Buying the best home insurance policy for your needs requires that you shop around. Get several home insurance quotes and then compare them carefully. Talk with an insurance agent to see what your special needs might be and find out where you might save money in order to get your best home insurance deal.
