| Top 20 Metropolitan Areas |
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- New York, NY
- Los Angeles, CA
- Chicago, IL
- Houston, TX
- Phoenix, AZ
- Philadelphia, PA
- San Antonio, TX
- San Diego, CA
- San Jose, CA
- Detroit, MI
- San Francisco, CA
- Jacksonville, FL
- Indianapolis, IN
- Austin, TX
- Columbus, OH
- Fort Worth, TX
- Charlotte, NC
- Memphis, TN
- Baltimore, MD
- Boston, MA
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Types of Home Insurance Policies |
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A home is perhaps the most expensive asset you will ever own and it is important to understand the best ways to protect its worth and your financial investment in it. Homeowners insurance will be there to help you repair damages that may occur or replace items that may be stolen from your premises. A quality home insurance policy will not only protect the structure of your home and the property that it sits on, but can also insure items, furnishing or other assets that reside in the house.
Homeowner’s PoliciesThere are seven basic types of home insurance policies that cover most any type of situation for coverage of a personal dwelling. These policies have been standardized by the Insurance Services Office (ISO) and are listed as Home Owner’s Policy 1 (HO1) through Home Owner’s Policy 8 (HO8).
- HO1 – Basic
This type of policy covers the most basic of incidents that may damage a home or its contents. It covers 11 basic types of perils, including damages caused by naturally occurring events like hailstorms, wind, lightening or volcanic eruption and also covers damages due to vandalism, civic commotion, fire, smoke, aircrafts and other vehicles. Natural disasters such as earthquakes or floods are typically excluded from this policy.
- HO2 – Broad
An HO2 covers everything an HO1 covers plus a few additional listed perils like falling objects, snow, non-natural flooding (typically from appliances or broken pipes), weight of ice and damages caused by an electrical surge.
- HO3 – Special
An HO3 is the most common type of house insurance purchased because it covers all types of perils except those specifically named as exclusions in a policy—usually earthquake and flooding and sometimes even war or nuclear incident. If there is not a named exclusion then whatever peril may be is included in an HO3 policy.
- HO4 – Renter’s/Tenant’s Insurance
This type of policy was created for those who are tenants of someone else’s property and covers only the personal property of the renter due to the perils covered in an HO2 policy and does not include repairs or coverage of any of the structural property where the tenant is living.
- HO5 – Premier/Comprehensive
The HO5 is a special use policy. You will want to check with each specific home insurance carrier to find out what situations would qualify. An HO5 is very similar to an HO3 in that it covers all perils that are not specifically outlined in an exclusion clause.
- HO6 – Condominiums
This policy covers those who have chosen to purchase a condominium. While this policy will not cover the majority of structural damage that occurs on the outside of the building, it will cover interior damages, furnishings, and the basic liabilities of a regular HO2 homeowner’s insurance policy.
- HO7 – Mobile Homes
An HO7 policy is one written specifically for those who have purchased a mobile home. If you are a mobile home owner, you will want to discuss the ins and outs of this type of policy specifically with the house insurance carrier you select to see the restrictions and benefits this type of policy may offer you.
- HO8 – Older Homes/Location
This type of policy is very similar to an HO1 policy in that it will provide damage coverage due to a list of basic perils. However, this type of insurance is usually used for older homes, many which have historic value and the coverage is based on the actual monetary value of the structure and not just the cost to rebuild or replace the home. Many of these homes would cost more to rebuild that the fair market value of the structure itself.
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