House Insurance Types
- Choose the right kind of insurance to protect your home.home sweet home image by David Dorner from Fotolia.com
For most people, their home is their biggest investment. Homeowners insurance protects this investment from a variety of risks, such as fire and theft. Different types of homeowners insurance are available, depending on whether you own a home or condo and the age of your home. In addition, policies are available for renters. - An HO-1 homeowners policy covers your home and personal property against 11 risks: fire or lightning; windstorm or hail; explosion; riot or civil commotion; aircraft; vehicles; smoke; vandalism or malicious mischief; theft; volcanic eruption; and damage caused by glass or safety glazing material that is part of a building.
- An HO-2 policy offers slightly more protection than an HO-1 policy. It covers your home and personal property against the same 11 perils that an HO-1 policy covers, as well as weight of ice, snow or sleet; falling objects; electrical surges; and appliance leaks. HO-2 policies are typically used for mobile homes.
- An HO-3 policy is the most common homeowners policy. It typically provides coverage for your home and personal property against all perils except flood, earthquake, war and nuclear accident. In addition, it offers liability and additional living expenses coverage.
- An HO-4 policy is a renter's policy. Renters can buy this policy to protect their personal property from the same perils that an HO-2 policy covers. An HO-4 policy does not cover the building itself, but it does offer liability and additional living expenses coverage.
- HO-6 policies are homeowners policies for condo owners. It covers against the same perils that an HO-2 policy covers and can be personalized to cover items the condo association does not cover. For example, the condo association might cover the original fixtures in a condo but not upgraded fixtures that the homeowner chooses to install.
- An HO-8 policy provides coverage for older homes, especially historic homes in which the cost to replace the home is more than the home's market value. This type of policy is similar to an HO-1 policy, covering against the same 11 perils. However, an HO-8 policy only pays the cost of repairing a home up to its actual cash value; it does not pay full rebuilding costs.
