What types of home insurance are available?

Home insurance offers legal coverage, which protects an individual’s property against any form of damage. It also helps replace, rebuild, or repair the damaged home. Different insurance companies offer different types of home insurance policies. Most home insurance policies can have significant discounts.

Different types of home insurance policies:

HO-1 – Least Significant Policy

It offers coverage for the first ten claims, specifically mentioned in the policy. It can also provide coverage for certain valuables, such as paint, antiques or accessories, for an additional fee. Currently, this type of policy has become obsolete in many states.

HO-2 – Limited Coverage Policy

This policy also offers limited coverage. It offers coverage for sixteen possible disasters. This policy is specifically designed to provide mobile home coverage.

Most Popular Policy HO-3

This is one of the most popular types of home insurance policies. Provides home protection from all disasters. Protects the structure and contents of the house. Offers coverage for liability that may arise from routine use.

It also covers the risk of guests who may confront you with injuries or accidents on the premises. A mortgage lender always prefers this type of policy.

Tenant Policy H0-4

This policy is exclusively for renters. It comes at very low cost with a high amount of coverage. Provides coverage for the apartment and other household items, such as kitchen cabinets. It is intended to cover claims arising from injuries or accidents to guests or bystanders up to 150 feet from the residence.

Policy HO-5

It is similar to the HO-3. This policy provides coverage for the owner of a property and his property. It also covers any causality caused to guests or passers-by. It claims to cover a wider area and more incidents and damage than HO-3.

Policy HO-6 for Condominium Owners

It is a form of auxiliary home insurance policy. These types of home insurance policies are for condominium owners. It offers coverage for the condominium’s belongings as well as for the structural parts of the condominium. Covers against the sixteen disasters.

HO-8 for old houses

This policy is specifically for older homes. Offers damage refunds based on actual cost value. This means that it is worth replacing the house or its belongings without deducting the depreciation value. Often times, it is difficult to obtain full replacement cost policies for some older homes.

Other Types of Home Insurance Policies:

Guaranteed Replacement Cost:

This policy provides the highest degree of protection. However, it goes beyond the policy limit and pays for the entire cost of rebuilding the home after any type of disaster. This policy protects against a sudden increase in the cost of construction.

Construction costs may increase due to shortage of building materials, after disaster or any unexpected situation. However, this type of policy may not be available for older homes.

Extended Replacement Cost:

This country policy has a particular percentage over the limit of the policy to rebuild the house. For example, people who purchase this policy for $100,000 can get an additional $25,000 of coverage.

In all cases you will want to save money. You can easily do this by getting as many quotes as you can. To help you get started, simply take a look below at either of the two listed sites. Getting a quote is a fast and free way to save money today.