Insurance Homeowners – Types of Homeowners Insurance Policy

Homeowners Insurance is the type of insurance that covers the damages and the losses that happen to an individual’s residence. This will also include the assets and furnishings in the residence and liability coverage against accidents on the property.

Also known as Home Insurance, this type is a vital necessity and not something to joke about. Whether you live in a condo or a mobile home, homeowners insurance is a protective umbrella with financial protection in an accident or disaster.

Insurance Homeowners

What’s more, a homeowner insurance policy is mainly known for four kinds of incidents: exterior damage, interior damage, injury that occurs while on the property and damage/loss of personal belongings.

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Types of Homeowners Insurance Policy

Here are the different types of homeowners insurance policy from the least amount and above:

HO-1 Policy

This is the basic form of the homeowner’s insurance that provides a simple coverage. This insurance policy is limited in a way because it only covers these 10 disasters that happen in your home:

  • Explosion
  • Aircraft damage
  • Fire or lightning
  • Civil commotion or Riot
  • Theft
  • Smoke
  • Volcanic eruptions
  • Damages by vehicles
  • Vandalism
  • Hail or Windstorm

Also, it provides coverage for the house’s structure at the actual cash value. It means you do not get the amount you need to rebuild fully. This is the least coverage under the homeowners’ insurance policy.

HO-2 Policy

This insurance policy offers more coverage than the HO-1 policy, which covers:

  • Falling objects
  • Freezing of air conditioning or plumbing
  • Accidental damages caused by artificially generated electrical current
  • Weight of snow and ice
  • Cracking or Bulging caused by an accidental event
  • Overflow or discharge of water or steam

The HO-2 policy also includes coverage for personal belongings, personal liability, medical payments to others, and more.

HO-3 Policy

The most common type of homeowners insurance covers medical payments, additional living expenses, house and belongings, etc. It provides coverage for these disasters:

  • Smoke
  • Explosion
  • Damages caused by vehicles
  • Weight of snow, sleet, and ice
  • Accidental cracking, tearing of heating, etc
  • Damages caused by aircraft
  • Civil commotion or Riot
  • Fire or lightning
  • Hail or Windstorm
  • Falling Object
  • Accidental damage due to short-circuiting of an electrical current
  • Volcanic eruption
  • Theft
  • Overflow of water from plumbing, air conditioning, household appliances, and sprinklers that put out fires.
  • Vandalism
  • Freezing of household appliances, plumbing, air conditioning, etc

HO-4 Renters Policy

This policy is suited for people renting houses and apartments. While it doesn’t cover the damages to the rented structure itself, it does cover the belongings listed in the HO-3 policy.

HO-5 Policy

Also known as a comprehensive policy, it offers users the highest insurance coverage for their belongings and houses. It also includes coverage for liability, additional living expenses, and medical bills to others.

HO-6 Policy

This is the best insurance policy for people who live in condos. This policy covers:

  • Floors, ceilings, and walls
  • Liability
  • Personal Belongings
  • Renovations done to the Condo after you bought it
  • Medical payments to others
  • Additional living expenses

H0-7 Policy

This is similar to the HO-3 policy, but it only applies to mobile homes. This policy ensures structures like:

  • Single and double-wide mobile homes
  • Single and double-wide manufactured homes
  • Trailers
  • Sectional homes
  • Modular homes

Note that this policy does not apply when your mobile home is in transit. It only applies to you if your home is packed.

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HO-8 Policy

This policy is usually applied to older homes built for over 40 years. For the historic and registered landmarks and homes, this policy covers these disasters:

  • Aircraft damages
  • Vehicles damages
  • Riot and civil commotion
  • Vandalism
  • Volcanic eruption
  • Smoke
  • Fire or lightning
  • Hail or Windstorm
  • Theft

Things that are also included in this HO-8 policy are coverage for liability, additional living expenses, and medical payments.

What Is Not Covered By A Homeowner Insurance?

The everyday events or situations not covered by homeowners insurance policies include damages by floods, earthquakes damages, sinkholes damages, damage from drain or sewer backups, damages by mold, rodents, termites, damages caused by acts of terrorism, and more.

Factors That Affect Homeowners Insurance Rates

These are considerable factors that are likely to affect the rates of your homeowner insurance policy:

  • History of the Past Claims
  • Crime rate
  • Neighborhood
  • Coverage options
  • Condition of your home
  • Coverage amount desired
  • Building materials availability

There are also random factors that could and unpredictably impact risks, impacting the rates.

How to Compare Home Insurance Companies

If you are looking for the best home insurance company that you can work with, here are tips for comparing their services:

  • You have to ensure that the insurance you will work with is trustworthy and legit. You can visit the Department of Insurance website to learn about the ratings of home insurance companies in your state.
  • Do more research on the home insurance companies in your state. Track their top ratings and view the general customer feedback about the company.
  • Look at different claim responses and determine whether a third-party call center or licensed adjuster will handle your claim calls.
  • Gather as many quotes as possible from different home insurance companies and compare their rates. Many companies offer special discounts to seniors or people who work from home. Find the best one that suits you.
  • You can visit the insurance companies directly or contact an independent agent that deals with multiple companies. Select whichever one works best for you.

These are some useful tips on comparing different home insurance companies. You can start working with the one that best suits you when you are finished.

Best Homeowners Insurance Companies

Here are the best homeowners insurance companies that you can consider working with:

  • Erie
  • Nationwide
  • Westfield
  • State Farm
  • USAA
  • American Family
  • Chubb
  • Auto-owners

You can contact the companies and get their quotes to find the best one that suits you more.

Frequently Asked Questions

Here are some frequently asked questions you can check out:

How Do I File A Homeowners Insurance Claim?

You will contact your insurance company’s claim department if you want to file a claim. When you do, please provide them with the required details of the incidents. They will guide you through the entire process, assign a claims adjuster, and proceed to assess the damage.

Do I Have To Buy Homeowner’s Insurance?

You must consider purchasing a homeowner’s insurance because of its benefits and financial protection in disastrous cases.

Does My Policy Cover Me If A Person Is Injured on My Property?

The policy might cover you if you were careless in causing the injuries. However, if you were not, then the coverage is strictly available under the medical payments to others that is provided in the policy.

How Long Does A Company Have To Settle Your Claim?

It should take them a span of 30 days for your insurance company to acknowledge receiving your claim. Still, no period is specific to how long they will settle your claim. It may all vary from one insurance company to another.

Does My Policy Cover A Flood?

The homeowners’ policies do not cover rising water or food damages. Although this is available in some mobile home policies, you must get flood insurance with the assistance of your agent.