Types Of Homeowners Insurance
For most of us, our property is the single biggest investment we will make. It is
vitally important we protect that investment and homeowners insurance is something
that every homeowner should have. Many mortgage lenders usually wont lend unless
some type of homeowners insurance is obtained.
There are several different types of homeowner insurance available and these provide
different levels of cover. The following describes the varying types.
HO-1
This is the most basic policy. It covers your property and personal effects against
wind storm or hail, fire or lightning, riots or civil commotion, explosions, aircraft,
vehicles, theft, smoke, vandalism or malicious mischief, and broken glass.
HO-2
This policy covers everything covered in HO-1 and in addition to that also protects
against damage caused by the weight of ice, falling objects, snow and sleet, damage
of a water heating system, building collapse, leakage or overflow of water from
within a plumbing, heating or air conditioning system, freezing of plumbing, and
accidental injury from electrical currents.
HO-3
This is the most common policy for a homeowner. This policy covers everything that
the HO-2 policy covers as well as any liability from visitors he they be injured
on the premises.
HO-4
This policy is often referred to as renters insurance. In this type of policy the
dwelling is not covered because the owner of the policy is not the owner of the
dwelling. But, their personal property would be protected similar to a HO-3 policy.
HO-5
This policy is similar to HO-3 but is more comprehensive and covers a broader range
of misfortunes.
HO-6
This policy is designed specifically for condominium owners and provides coverage
for the part of the building owned by the policyholder as well as their personal
property.
HO-8
The coverage on these type of polices are for older home and the coverage is very
similar to an HO-1 policy.
In addition to the above types of homeowner insurance, these may or may not cover
certain misfortunes unless added to the policy. Events such as earthquakes and floods
are not standard misfortunes written in as standard to a policy. You will need to
request these separately to be added.
Shop around for the best deal for your money. Do your homework and understand the
different options, pros and cons, of the different policies that are available.