What Are the Different Types of Homeowners Insurance? - What You Need to Know

Homeowners insurance is something that everyThis is the most common policy for a
homeowner should have. For most of us, ourhomeowner. This policy covers everything that
homes are the single largest investment we willthe HO-2 policy covers as well as any liability from
ever make. It is vitally important that we protectvisitors he may be injured on the premises.
that investment. Many lenders actually requireHO-4
homebuyers to obtain homeowners insuranceThis policy is commonly referred to as renters
before making a loan. In fact it would be quiteinsurance. In this type of policy the dwelling is not
difficult to find a lender that did not have thiscovered because the owner of the policy is not
requirement. There are several different types ofthe owner of the dwelling. But, their personal
homeowners insurance available that each coverproperty would be protected against the same
different things. This article will define the differentperils and liabilities in an HO-3 policy.
types of homeowners insurance and will alsoHO-5
discuss some things that will affect the price of aThis policy is similar to HO-3 but is more
policy.comprehensive and covers a broader range of
In 1971 an organization known as the ISO wasperils.
formed, the Insurance Services Office. The ISOHO-6
has established seven standardized homeownersThis policy is designed specifically for condominium
insurance forms. Each one covers a different setowners and provides coverage for the part of
of potential perils.the building owned by the policyholder as well as
HO-1their personal property.
This is the most basic policy. It covers yourHO-8
dwelling and personal property against fire orThis type of policy is for older homes and the
lightning, wind storm or hail, explosions, riots orcoverage is very similar to an HO-1 policy.
civil commotion, aircraft, vehicles, smoke,In addition to all the things that the above policies
vandalism or malicious mischief, theft, and brokenmay or may not cover there are certain perils
glass.that generally are not covered unless specifically
HO-2added to a policy. Things such as floods and
This policy covers everything covered in HO-1 andearthquakes are not standard perils covered by
in addition to that also protects against fallingthe above policies and would need to be added if
objects, damage caused by the weight of ice,you require coverage for those particular perils.
snow, and sleet, building collapse, damage of aIt's a good idea to do your homework and learn
water heating system, leakage or overflow ofabout your different options before you commit
water from within a plumbing, heating, or airto a homeowner's insurance policy. Of course
conditioning system, freezing of plumbing, heating,you'll want to make sure you get the most
and air-conditioning systems, and accidental injurycoverage for the least amount of money and
from electrical currents.that will require shopping around for the best deal.
HO-3