The Type of Home Insurance You Choose Makes a Big Difference

There are a wide range of different home insurance, not only companies, but policies within those companies that we each have to choose from. Many people are not aware just how many different options they have and today we are going to break down a few of what we would call the ‘most important’. At the end of the day, what is truly most important depends on what your needs are so be sure to ask your representative as many questions as you feel necessary in order to make sure your coverage is just right for your unique situation. Also keep in mind, titles for different types of coverage may vary between companies. We are using the simplest titles in order to better explain each type of policy on a general basis.

Homeowner’s Insurance (HO1): The Most Basic Type of Coverage

This is the most basic of insurance policies for a single home. At least one person inside a single home must have HO1 to cover things such as natural disaster protection, for things such as fire and storm protection. This type of policy is typically also going to include theft and vandalism, as well. This type of policy is not going to typically include liability insurance so any accidents on the premises are not going to be covered. This type of coverage is not enough for a home that is still being paid off.

HO2: A Little More to Work with

If you feel that HO1 isn’t enough protection for you and are looking for coverage that includes not only your home itself but also other structures on your property, such as that new fence you just built, or your favorite tool shed, then HO2 may be more up your alley. (HO2 includes all of HO1). What types of ‘perils’ are covered depends on your insurance company but typically you’ll have things included on your policy, such as: ‘freezing’ and ‘falling objects’. It is always important to read the fine print and never assume exactly what each peril means. Sometimes how something happens to your home is more important than what happened.

HO3: Getting Even More Specific

HO3 is a nice policy to have because it literally protects you against anything and everything out there, unless said peril is mentioned in the policy as being excluded. This gives much more peace of mind, knowing exactly, without a doubt, what you are looking at. HO3 is like a super HO1 and HO2 combination.

HO4: Renters Insurance; Protecting What You Have

Renters Insurance is important because sometimes a landlord will have their property covered, but this does not do anything for your personal items. Another reason renters insurance is so important is because it offers you liability, for yourself and for others on your property so if anything were to happen in (or around) your home; you won’t have to stress over medical bills and lawsuits.

HO5: The Best of the Best

If you have the money to spend and are looking for a hassle-free insurance policy then HO5 is your best bet. It is similar to HO3 in that only things listed are not covered but it generally is going to have a much broader and extensive coverage.

HO6: Condominiums Only

HO6 is a policy in which condominium owners are covered. This type of coverage is similar to renters insurance in the fact that it is a more specific way to insure your property based on the type of dwelling it is.

HO8: Great for Older Homes

HO8 is a type of insurance that is specifically designed to insure homes that are already owned and getting on in their years. If you have an older home and the replacement cost is much higher than the market value, then this is going to be the perfect type of insurance for you and your family.

George Smith-Davies is a journalist as well as a blogger at the same time, he has a sound knowledge of all kinds of insurances. He says that you must try to find more information on the types of insurances available before you buy one.

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