Home insurance is a financial asset that protects your personal property from damage and loss. This includes any structures or materials on your land, including buildings, vehicles, boats, machinery and furniture. Unfortunately, even the best insurances do not protect against all possible risks. This is because not all home insurance policies are taken out equally.
Choosing the right home insurance can therefore be one of the most difficult decisions that a homeowner will have to make. So it is important to know the type of coverage you need before choosing your insurance. We have provided different types of homeowner policies for you below so you can decide which one is best for you:
Types of homeowners’ insurance:
- 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 insurance, it will pay for all the damage to your house up to a certain amount. This type of insurance does not cover personal belongings, so expensive items such as jewelry or certain electronics will not be covered if they disappear / are damaged in an accident or fire.
- Wide shape – HO2: This is the most common homeowner offered by insurance companies. Coverage for your home and personal property are both included in this insurance, which means that it covers all damages up to a certain amount. Personal belongings are covered at cash value.
- Special form – HO3: It will cover your home for the replacement cost and personal property at cash value. You can also increase the coverage amount by getting a supplement. It differs from HO2 because HO2 covers very few dangers, while HO3 offers coverage for all risks except for special situations such as a nuclear attack, flood, earthquake, war and sinkholes, to name a few.
- Contents Wide form – HO4: Also known as rental insurance, it is designed for those who rent out their home and need their property at repossession cost against the same dangers as HO3. It also covers loss of rental income in case something happens to the house and its temporary habitability.
- Comprehensive form – HO5: This is the most complete form of homeowner coverage. It covers all hazards under HO1, HO2 and HO3, as well as damage due to some additional risks. In addition, it has a higher coverage amount for loss or damage to the home or personal property, which is offered in the form of compensation cost instead of cash value, so it is usually higher.
- Condo Insurance HO6: This form is designed for tenant-owners. It is also known as the “walls-in” policy because it usually covers the walls, ceilings and floors of the apartment. It also covers your personal belongings.
- Mobile Hone Insurance – HO7: Motorhomes are not covered by HO3. If you have a motorhome, this is the coverage for your unit and its contents that are offered at a replacement cost.
- Modified coverage – HO8: It is a modified form of homeowners policy where you get the coverage that is not otherwise available with other types of homeowners insurance, or the home does not meet the standards for coverage for other insurances.
Paradiso Insurance can help you decide:
If you find all these different types confusing, call the homeowners insurance experts at Paradiso Insurance and they will help you find the right insurance depending on your property, specific housing situation and budget.