Congratulations! You’ve been house-hunting for quite some time now, and you’ve finally found the home of your dreams. You’ve given your offer and now you’re going through the process of securing a loan. Everything seems to be going well until your mortgage lender mentions that you’ll be needing homeowners insurance.
Of course, you weren’t planning on placing money on such a big investment without having some type of insurance on it. However, with all of the different types of homeowners insurance plans out there, it can be pretty challenging to find the right one for your needs.
Thankfully, there’s no need to fret. This article goes over some of the different types of homeowners insurance policies available. Take a look and see which one fits your needs!
1) HO-1 Policies
HO-1 homeowners insurance is the most basic home insurance that you can buy. This type of insurance provides coverage for just the structure of your home, its attached structures, and any appliances that come with the home.
This insurance doesn’t cover your personal property or liability, but if you’re looking to cover the bare minimum it’s the choice for you. Things like damage from vehicles, fire, hail, and vandalism are typically covered through HO-1 policies.
2) HO-2 Policies
HO-2 policies are also called broad form coverage policies. This is because they cover a much broader scope of damages and claims. HO-2 covers everything that HO-1 takes care of, but it also covers your personal items as well. Some companies will also offer liability insurance.
Some matters that HO-2 will cover include accidental water discharges, pipe freezing, damage from falling objects, and accidental damage from electrical currents.
3) HO-3 Policies
HO-3 policies are quickly becoming the standard in home insurance policies. This is because it covers most of the important and valuable things in one’s home, and can be activated in practically every situation caused by nature or by manmade equipment. If you’re purchasing a home with a mortgage, your lender will likely have you pay for this option.
HO-3 policies cover your home and your personal property. It also covers liability claims and medical payments. Coverage can also be more nuanced and includes matters like defective construction, water damage, nuclear hazards, power failure, mold and rot, and even damages from war.
4) HO-6 Policies
HO-6 policies are specifically for those who have bought condos. Since you’re only buying the unit and don’t own the whole building, your coverage will be slightly different.
HO-6 policies cover the interior of the unit, and also offer you liability coverage. You can file claims for things like aircraft damage, frozen pipes, smoke damage, and explosions.
Found a home insurance policy that works for you? Make sure you go to a trusted source like https://insurancetales.com/ to get the best coverage and the best prices!
All Types of Homeowners Insurance for Your Needs
Now that you know the different types of homeowners insurance policies on the market, you shouldn’t have a problem finding the right one for your humble abode. Looking for other ways that you can get the best for your home? Check out our site for more neat advice!