Knowing which type of Homeowners Insurance can be more difficult and confusing than it needs to be. That is why understanding the different types of coverages, and what is best for your situation is so important. With how expensive insurance is now a days, nobody wants to pay more for a coverage they do not use. In todays blog we will be going over the different types of homeowners policies, and showing the differences between them.
HO-1 (Basic Form)
This is going to be the most basic type of home insurance, most states it is not even available due to its very bare bones coverages. In fact, your home is only protected from eleven specific accidents such as; fire, lightning, and windstorms and hail. However, there is no liability or personal property coverage. Because of the lack of coverage, most mortgage companies will not accept this as a valid form of insurance.
HO-2 (Broad Form)
The HO-2 policy covers all of the perils covered in the HO-1 form, however it also adds seven additional perils. These include but are not limited to; falling objects, certain sudden or accidental damage, and the weight of ice, snow, or sleet. HO-2 policies only cover the specified perils, if the incident is not specifically stated in the policy, then chances are you will not be covered. HO-2 will cover personal property and in some instances personal liability.
HO-3 (Special Form)
The HO-3 policy is the most common type of homeowners insurance. This is a even more expansive version than the HO-2. This covers your home from every type of peril unless it is specifically excluded in your policy, like floods and earthquakes. It does provide personal liability coverage, and protects all of your belongings.
HO-4 (Tenant's Form)
This is commonly referred to as "renters insurance." This coverage does not cover the home's structure, as it is only designed for renters. It has coverage for loss of use, personal property, and liability.
HO-5 (Comprehensive Form)
This is by far the most comprehensive policy and offers the most protections. Any personal property losses are paid out based on the replacement costs and not the actual cost value. Your coverage limits will be much higher, and the restrictions put onto your policy will be very minimal.
HO-6 (Condo Form)
This policy is for condo owners only. The amount of coverage needed is going to depend on how much of the structure the HOA is covering.
HO-7 (Mobile Home Form)
As stated in the name, this policy covers specifically mobile or manufactured homes.
HO-8 (Modified Coverage Form)
An HO-8 policy is designed specifically for home built more than 40 years ago. It usually offers coverages for older homes, while also acting as a standard home policy.
There is a lot of different types of coverages, it can be confusing. So let us do all the hard work for you! Give us a call today and we can help you find the policy that is perfect for your situation. For any of your insurance questions and needs, call (480) 535 5709.
Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…
Disclaimer: Coverage will vary on state, insurance company, and type of policy.
<a href="https://www.freepik.com/free-photo/photo-dark-skinned-woman-her-husband-think-how-satisfy-debt-look-bills-near-window_10747863.htm#fromView=search&page=1&position=5&uuid=47162425-3bc1-4c5f-81e4-c071c2f321b2">Image by wayhomestudio on Freepik</a>
Comments