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What Are the Different Types of Homeowners Insurance?
Homeowners' insurance policies are those policies, which provide coverage to owned homes. Many people think that homeowner's policies provide protection only from natural calamities, fire or other disasters.
No doubt, homeowners policies offer coverage by insuring the house against such calamities, but they cover other expensive household things too. However, the range of coverage depends on the type of plans that a homeowner chooses.
Thus, before applying for insurance policies, individuals need to know the types of homeowner policies and their benefits. Therefore, to start with, individuals need to make an inventory list of household things.
These household things can include jewelry, furniture, electronic goods or anything, which people wish to cover.
Types of Homeowners Insurance:
HO1:
HO1 covers a house and household items. It may comprise objects such as paintings, jewelry, furniture and burglary.
It also covers a house against 10 perils including explosions, vandalism, and defacing of house by animals. HO1 is a basic kind of policy in which premium rates are affordable. However, it is no longer available in most states.
HO2:
HO2 is limited type of policy in which the insurance companies provide coverage to specific parts of house. This type of coverage provides coverage against sleet, ice, surges, outages and plumbing malfunctions and so on.
It does not insure damages to house due to other systems such as television or other electronic items. HO2 policy is useful for people who live in regions of heavy snowfall, or in mobile homes.
HO3:
HO3 policy covers all aspects of homes such as structure and other household contents. This policy also bears all costs, if a visitor suffers from injuries in the premises of the homeowner's residence. It also protects coverage against floods, earthquakes, and war.
HO 4:
HO 4 type of homeowner insurance plan is for individuals who live in rented houses and co-operative buildings. It provides coverage against all disasters. It also covers household items owned by the renter. In short, HO 4 is a renter version of HO 2 and HO 3.
HO 5:
HO 5 policy is same as HO 3 policy. However, this type of insurance policy covers a home and every household thing. If visitors suffer from injuries in the houseowners premises, the insurance company bears all the medical costs.
HO 6:
HO 6 policy is for condo owners. This policy provides coverage to the condo as well as its premises. In addition, if guests or residents suffer from any injuries in the condo or on its premises, the company bears all medical expenses.
HO 8:
This policy is for older homes. It usually compensates the owner on actual cash value basis. Thus, the owner gets an amount equal to replacement cost minus depreciation. Full replacement cost policies may not be possible in some cases of these old homes.
Conclusion:
Thus, people have to choose any of these homeowner's insurance policies according to their need. Compare online quotes of different insurance companies and select the one that offers best rate in terms of premium, interest rates, and wide coverage.
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