| Home insurance covers private homes against | | | | the case of condo coverage, the part of the |
| damage or destruction. While new homeowners | | | | building owned by the insured and the property |
| might initially be put off by this extra monthly | | | | housed therein are insured. For renter's coverage, |
| expense and question its worth, there is no doubt | | | | the insured's personal property is covered against |
| that homeowners' insurance is a valuable and | | | | theft or damage. In both cases, the policy also |
| necessary part of home ownership. Because | | | | typically offers liability coverage, sometimes |
| mortgage lenders always require the purchase of | | | | extending as far as 150 feet away from the |
| home insurance as a condition of providing a | | | | covered unit. The specifics of HO-4 and HO-6 |
| home loan, it's easy for new homeowners to | | | | coverage vary widely depending on the specific |
| have an insurance policy without really | | | | policy and the existing policy in place for the |
| understanding its provisions; however, given its | | | | complex as a whole. |
| importance in the event of damage to the home, | | | | The remaining policy options are essentially |
| it's well worth taking a few minutes to learn the | | | | variations on the three more common forms, |
| basics of homeowner coverage. It should be | | | | with the exception of HO-8, which allows owners |
| noted that this information focuses on insurance | | | | of older homes that would have a higher |
| coverage in the United States. | | | | replacement cost than the market value, to insure |
| There are seven standard home insurance | | | | them at the more affordable market value rate. |
| packages; these are designated HO-1, HO-2, HO-3, | | | | In addition to the standard policy packages listed |
| HO-4, HO-5, HO-6, and HO-8. Of these, the most | | | | above, homeowners in some areas might qualify |
| commonly purchased policy is HO-3. It covers the | | | | for supplemental insurance, such as flood or |
| home, structure, and contents in the case of | | | | hurricane insurance. These add-ons are called |
| damage or destruction. Equally important, it usually | | | | riders and add to the monthly cost of the |
| offers liability coverage for visitors who are | | | | insurance, but they can be worthwhile |
| injured or have an accident while on the property. | | | | investments in high-risk areas. |
| The specifics of HO-3 policies vary widely and will | | | | One important task every homeowner should |
| be spelled out in very specific detail in the | | | | complete is a home inventory. This list of |
| individual policy. This type of coverage is often | | | | furnishings and belongings is essential when filling |
| called 'all-risk' insurance. | | | | out claims for theft or loss due to fire or other |
| After HO-3, the most commonly purchased | | | | destruction. A photo or video log of major |
| forms of home insurance are HO-4, which covers | | | | furnishings is also helpful, and recording product |
| renters, and HO-6, designed for condominium | | | | serial numbers whenever possible is also |
| owners. In each case, the policy is written to | | | | important. |
| cover the areas not covered by blanket policies | | | | Getting a good home insurance policy should be at |
| written for the apartment or condo complex. In | | | | the top of every homeowners priority list. |