|
Home Insurance
Types of Home Insurance
It is prudent for every homeowner to take on home insurance. Before you sign up for home insurance you should be aware of the different types of home insurance available, so that you can choose one that provides the kind of coverage that you require. Here is a look at the different types of home insurance policies:
- Homeowners – 1 (HO – 1) – In this home insurance type, you receive coverage for specific terms stated in the policy. In other words coverage or protection against losses is limited here. Usually such policies suit you if you want to get insurance coverage for some valuable items in your home like an antique or a painting.
- Homeowners – 2 (HO – 1) – This policy is very similar to HO – 1, but it provides coverage for a list of events against which you are insured for losses. This means coverage from the insurance company is limited to the events stated in the policy.
- Homeowners– 3 (HO-3) – This policy is also known as the ‘all risk or ‘open perils’ policy. It is taken up by most homeowners and it covers most losses except situations such as war, flood, nuclear accidents, and earthquake. It provides coverage for items inside your home as well.
- Homeowners– 4 (HO – 4) – This policy is referred to as renters insurance or renter's coverage. It provides coverage for losses incurred on those areas of the home and the items in the home which are not covered by the blanket policy written for the entire home complex.
- Homeowners– 5 (HO – 5) – This policy is very similar to the HO-3, except that it is applicable to a home and not a condo or an apartment. Coverage is provided against losses suffered by the homeowners as well as any issues faced by visitors or passers-by. It covers more losses than what is covered in the HO- 3.
- Homeowners– 6 (HO – 6) – This policy is also known as Condominium Coverage. It covers for losses incurred by the home owner for that part of the building that belongs to them and can also provides coverage for losses to guests of the insured in addition to personal property.
- Homeowners– 8 (HO – 8) – This policy is also refered to as the ‘older home’ insurance as it enables owners with higher replacement costs to get insurance coverage at a lower market value rate.
An important thing to note here is to carefully go over the specifics of the type of coverage you are considering with your insurance company before signing so that you get the coverage that is right for you.
Summary
There are many types of home insurance policies and any one considering home insurance should study the coverage provided by the different policy types available before signing up.
|
