Types of Homeowners Insurance
Because your home is different from even your neighbor’s, you each probably need different homeowners insurance. That’s why there are many types of policies available on today’s market. What are these policies? How can each of them help you?
The 8 Types of Homeowners Insurance
All homes are different, but no matter the size, shape or location of yours, you want to feel secure whenever you are in the house, in the yard or even away from home. That’s what homeowners insurance is supposed to do.
Most Texas residents need one of the following eight types of policies:
HO-1 Coverage: Basic Named-Peril Insurance
As its name suggests, this is the most-basic type of homeowners insurance. Coverage will usually only contain structure insurance and won’t cover your personal possessions. Policies will also only cover a defined list of perils, usually:
- Fires and Smoke damage
- Explosions, Volcanic eruptions
- Storms (Lightning, Windstorms and Hail)
- Theft and Vandalism
- Damage caused by a vehicle or aircraft
- Riots or other civil issues
So, in other words, if another type of accident damages the home, then a HO-1 policy won’t cover it. HO-1 policies aren’t available in most states nowadays.
HO-2 Coverage: Broad-Form Named-Peril Insurance
HO-2 policies are a bit more expansive than HO-1 coverage. They still only cover named perils, but will cover all of the losses included in HO-1 policies in addition to other perils like:
- Sleet, snow and ice damage
- Burst pipes and other water overflows
- Steam damage
- Electrical surges
- Frozen HVAC systems
- Falling objects
HO-2 policies will usually include possessions coverage, and you might also be able to add liability coverage onto this policy.
HO-3 Coverage: Special-Form Insurance
HO-1 and HO-2 policies cover only named perils. HO-3 policies are something of the opposite.
Unless the policy specifically excludes a type of damage, it will often cover it. Therefore, you’ll have more coverage available, for more risks, often at an affordable rate. HO-3 policies will usually also include both possessions and liability coverage.
However, within HO-3 policies, you’ll often see that you have limited possessions insurance. Coverage might only pay for possessions damaged in a named peril under HO-2 policy stipulations, rather than from a wide list of losses. Your liability coverage might also have limitations as well.
HO-4 Coverage: Renters Insurance
For those who rent homes, HO-4 coverage is better known as renters insurance or tenant’s coverage. Usually, coverage will contain:
- Possessions insurance
- Liability insurance
- Accidental medical cost coverage
- Loss of use insurance
However, coverage won’t burden you with structure insurance, because you don’t own the home.
HO-5 Coverage: Comprehensive-Form Insurance
HO-5 policies are almost identical to HO-3 policies. However, with this coverage, you don’t face the restrictions on possessions insurance. Therefore, this is a very broad type of coverage.
HO-6 Coverage: Condo Insurance
If you own a condo, parts of the home are your responsibility to maintain, while other portions will belong to the condo association. HO-6 policies will take these differences into account. You’ll still be able to get possessions and liability insurance. However, you can extend structure protection only to items like the ceilings, floors and walls of the condo, which are often your responsibility.
HO-7 Coverage: Mobile Home Insurance
When you own a mobile home, you’ll be able to insure the structure, possessions and liabilities associated with the property. However, you can also get unique protection to apply to the qualities of the home that are unique to manufactured properties.
HO-8 Coverage: Insurance for Older Homes
An older or historic property might have special values and liability risks attached to it. Therefore, you might need special types of coverage to apply to the home’s value.
Helping You Get Covered
Having trouble understanding the type of homeowners coverage you might need? Come to Reliable Insurance Managers, Inc., and we’ll ensure you get full homeowners coverage today. Your policy will always offer the protection that is a benefit to you.
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