The roof over your head is something that should never be taken for granted. While it is a shelter, it has many more functions that you do not think about on a daily basis. That is why protection in the form of homeowner’s insurance is so important, so when disaster strikes, you are not left out in the cold.
Homeowner’s insurance is the best way to protect your home and property from disasters that may befall it. Not only to most homeowner’s insurance policies cover the structure itself, it also covers the property inside, as well as gives the homeowner liability insurance from accidents that might happen in the home or on the property. There are many types of homeowner’s insurance policies to fit many situations and protect from many hazards, depending on how much you want your coverage to be. In addition, the cost of a homeowner’s insurance policy is related to the home and the value of the contents inside you want insured.
The basic homeowner’s insurance policy is called the HO1, and lists 11 hazards or perils that it protects from. Nearly every time, to get a mortgage on a home, some form of homeowner’s insurance might be required. While doing without homeowner’s insurance in general is not recommended, for the term of the loan, the HO1 homeowner’s insurance policy will provide enough coverage. The basic hazards included on the HO1 homeowner’s insurance policy typically include fire, lighting, windstorm, hail, vandalism, theft, damage from vehicles, civil commotion, glass breakage, volcanoes, and personal liability. To expand what perils are covered for a minimum rate, the HO2 homeowner’s insurance policy can be used. The HO2 homeowner’s insurance policy provides coverage on an additional 6 hazards, including falling objects, damage due to the weight of ice, snow, or sleet, water damage (not from a flood though), sudden and accidental structural failure (though not collapse), freezing, and sudden and accidental damage from an electrical current.
The HO3 homeowner’s insurance policy is one of the most common policies taken out. In an HO3 homeowner’s insurance policy, named hazards are actually exclusions, so if something happens to your property, you are covered unless it is one of the listed exclusions. However, in an HO3 homeowner’s insurance policy personal property is only covered under the hazards in an HO2 policy. HO5 homeowner’s insurance policies are just upgraded HO3 homeowner’s insurance policies, affording an even greater level of protection.
The HO1, HO2, HO3, and HO5 homeowner’s insurance policies are the most common policies that most homeowners would look at for their property, however there are several policy types for special properties, such as renter’s insurance, condominium insurance, and old home insurance.