Homeowners Insurance Protects Your Biggest Investment
Homeowners insurance protects the investment you have made in purchasing your home—it is as important as the house purchase itself. Homeowners insurance protects you from events that damage or destroy your home and ensures that you will remain to have a roof over your head in the event of a catastrophic event. More on this website
In the United States, there are 8 levels of Homeowners insurance that you can purchase to protect your home and its contents. The varying levels offer a variety of coverage that you can pick and choose from as well as only insuring parts of your home or having extra insurance for objects in your home of extreme value.
Homeowners One, or HO-1, is a limited policy. HO-1 only offers coverage that you specifically outline in the policy. This is the perfect insurance for that priceless painting in your home, but will not cover any other damage or loss in your home. Most people use HO-1 as extra insurance to cover the loss of a valuable possession.
Homeowners Two, or HO-2 is also a limited policy. The HO-2 policy will cover portions of your house against damage from events that are specifically named within the policy. The events are listed in the policy, such as damage from fire or loss from theft, and will not cover loss or damage done by other means.
Homeowners Three, or HO-3, is the most common in home insurance in the United States. HO-3 coverage extends to all of your home and the contents. HO-3 insurance also covers you for liability on your property that can happen in regular daily use or for visitors that are injured on your property or have an accident on your property. The coverage will be outlined in the policy when it is written—you should thoroughly read the policy to ensure that you have a good understanding of what is covered and what isn’t, for example, damage due to flood or earthquake is probably not covered in your HO-3 policy as those particular perils require their own insurance. HO-3 insurance is also known as an ‘open perils policy’ or ‘all-risk coverage’.
Homeowners Four, or HO-4, is renter’s insurance and only covers the contents of your home or apartment but does not cover the structure itself. This coverage can also sometimes cover liabilities that happen within your dwelling.
Homeowners Five, or HO-5, is very similar to HO-3 coverage. HO-5 will provide coverage for a home, but not a condominium or apartment, and does not cover the contents or any liabilities that may arise. However, HO-5 covers a wider range of incidences and losses to the structure of a home than an HO-3 policy.
HO-5 is similar to HO-3 and covers a home, but not an apartment or condominium, the contents, and the homeowner from liabilities that may arise. This coverage covers a wider range of incidences and losses than the HO-3 policy. More here
Homeowners Six or HO-6 is better known as condominium coverage for condo owners. The coverage extends to the portion of the building that you own and the contents of the condo.
Homeowners Seven, or HO-7, is insurance for owners of mobile homes.
Homeowners Eight, or HO-8, is insurance for older homes. These homes typically have a higher replacement cost than the actual market value and are insured at the lower market value rate.