All Homeowner’s Insurance Policies Are Not Equal!
Homeowner’s insurance is a financial asset that protects your personal property from damage and loss. This includes any structure or material on your land, including buildings, vehicles, boats, machinery, and furniture. Unfortunately, even the best insurance policies don’t protect against all possible risks. This is because not all homeowners insurance policies are made equally.
Therefore, choosing the right homeowner’s insurance policy can be one of the most difficult decisions that a homeowner will have to make. So it’s essential to know what type of coverage you need before choosing your policy. We’ve provided different types of homeowners policies below for you so you can decide which one is best for you:
Types of Homeowners Insurance Policies:
- Basic Form – HO1: This is a basic form of homeowners coverage that only covers the value of your home and personal property. If you have this policy, then it will pay for all damages to your house up to a certain amount. This type of insurance does not cover personal belongings, so any expensive items such as jewelry or some electronics won’t be covered if they are lost/damaged in an accident or fire.
- Broad Form – HO2: This is the most common homeowners policy offered by insurance companies. Coverage for your home and personal property are both included in this policy, which means it will cover all damages up to a certain amount. Personal belongings are covered at their cash value.
- Special Form – HO3: It will cover your home at its replacement cost and personal properties at their cash value. You can also increase the coverage amount by getting an add-on. It differs from HO2 because HO2 covers against very few perils, while HO3 offers coverage for any risk except for special situations like a nuclear strike, flood, earthquake, war, and sinkhole, to name a few.
- Contents Broad form – HO4: Also known as renters insurance, it’s designed for those leasing out their home and need their property at replacement cost against the same perils as HO3. It also covers loss of rental income in case something happens to the house and its temporary inhabitable.
- Comprehensive Form – HO5: This is the most complete form of homeowners coverage. It covers all perils under HO1, HO2 and HO3, as well as damages resulting from some more risks. Furthermore, it has higher coverage amounts for loss or damage to the home or personal property, which is offered in the form of replacement cost instead of cash value, so it’s typically higher.
- Condo Insurance HO6: This form is designed for condominium owners. It is also known as the ‘walls-in’ policy because it usually covers the condo’s walls, ceilings, and floor. It also covers your personal belongings.
- Mobile Hone Insurance – HO7: Mobile homes are not covered by HO3. If you have a mobile home, this is the coverage for your unit and its contents offered at replacement cost.
- Modified Coverage – HO8: It is a modified form of homeowners policy where you get the coverage that otherwise isn’t provided with other kinds of homeowners policies, or the home doesn’t meet the standards for coverage for other policies.
Paradiso Insurance Can Help You Decide:
If you find all of these different types confusing, call the homeowners insurance experts at Paradiso Insurance, and they’ll help you find the right coverage depending on your property, specific living situation and budget.