Insurance is essential to owning a home. If you’re new to being a homeowner, it’s easy to overlook how important it is to have coverage.
Without insurance, you’re vulnerable to paying for repairs or even full replacement of your home out of pocket. You need to have homeowners insurance to keep your mortgage in good standing and to get any future loans.
But there are lots of different types of homeowners insurance. What are they, and what type do you need?
Below you’ll find all the different types of homeowners insurance, their benefits, and why it’s important to have them.
Understanding the Different Types of Homeowners Insurance
Homeowners insurance is an important part of protecting your home and possessions. Different types of homeowners insurance can offer varying levels of coverage. The most common types include:
HO-1 (Basic Form)
This is the most common type of homeowners insurance policy. HO-1 policies typically protect against a specific list of named perils, such as fire, lightning, vandalism, and theft. The policy does not provide coverage for certain property losses, such as floods and earthquakes, and does not provide personal liability coverage.
HO-2 (Broad Form)
This policy provides broader coverage than HO-1 and protects against a wider range of perils. This typically includes coverage for the same perils as HO-1. It covers additional perils like falling objects, the weight of snow or ice, the freezing of plumbing systems, and more.
HO-3 (Special Form)
This type of policy covers the dwelling and personal property on an open-peril basis. This means it covers all losses except those that are specifically excluded from the policy.
It also covers personal liability and vandalism if the property is vacant for more than 60 days. Learn more about insurance for vacant homes here.
HO-4 (Renter’s Insurance)
Also known as tenant’s insurance, HO-4 policies are designed for renters who do not own the property they live in. It covers personal belongings and provides liability protection. But it does not cover the structure itself since that is the responsibility of the landlord.
HO-5 (Comprehensive Form)
This is a comprehensive and broad coverage policy. It offers extensive protection for both the dwelling and personal belongings, similar to HO-3. The key difference is that HO-5 policies provide coverage for personal belongings on an open-peril basis.
HO-6 (Condo Insurance)
HO-6 policies are tailored for condominium owners. They cover personal belongings, liability, and improvements or alterations made to the unit. HO-6 policies typically focus on the interior of the unit.
HO-7 (Mobile Home Insurance)
Designed specifically for mobile or manufactured homes. It offers coverage for the structure, personal belongings, liability, and additional living expenses. Mobile homes have unique insurance needs due to their mobility and construction differences.
HO-8 (Older Home Insurance)
Designed for older homes, typically those that are considered historic or have architectural significance. They provide coverage based on the repair cost or market value rather than the replacement cost.
The Benefits of Having Homeowners Insurance
There are different types of homeowners insurance. Each type covers a different set of hazards and provides unique levels of coverage. These insurance policies provide peace of mind for homeowners, allowing them to cover home damages due to various occurrences.
Be sure to shop around for a plan that best suits your needs. Make sure to ask questions and understand the differences between coverage options. For further information about homeowners insurance, contact your local insurance consultant today.
