Types Of Home Insurance For Standalone Homes
April 17, 2019
There are lots of different types of home insurance policies. In determining which policy to purchase, you need to know first the level of coverage that you need. If you have a standalone house, here are the policy options for you.
HO-1 – This one is a basic insurance policy. It has limited coverage, which includes 11 specific events listed below. Any incident that’s not included on the list is not covered. Sometimes, this doesn’t cover personal belongings too. This policy is no longer offered in many states.
- Fire and lightning
- Hail and windstorm
- Riots and civil commotion
- Damage from aircraft
- Damage from vehicles
- Vandalism and malicious mischief
- The glass that’s part of the house
- Volcanic eruption
HO-2 – This is another basic policy with broader coverage than HO-1. It gives protection against the 11 events included in HO-1 plus a few more events, which are listed below. The events that are not on the list are not protected.
- Damage caused by falling objects
- Water damage due to plumbing’s accidental overflow
- Heating AC
- Home appliances
- Personal property
HO-3 – Also this is the most widely used type of policy due to its broad coverage. It protects the property from any unexpected event including the 16 previously listed events except those that are excluded explicitly like flood, earthquake, landslide, mudslide, sinkholes, and nuclear accident.
HO-5 – This is the most comprehensive type of policy. It is almost like HO-3, but with much broader coverage. This has lesser exceptions compared to HO-3. Most of the time, you can decide the limits of your coverage too.
HO-8 – This type of insurance policy is often used in architecturally significant structures, registered landmarks, and older homes. This is used for properties whose replacement cost is more than their actual cash value.
Note that renters and condo owners use other types of policies (HO-4 and HO-6) that are specifically designed for them.
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