We all agree that home is not just a shelter for our family, but more than that, it’s also a valuable asset and investment, for most people, home is even considered as the most valuable asset they have. So, as a valuable asset it becomes very important to protect our homes with insurance.
There are many insurance providers that offer home insurance policies with different kinds of protections. Having a lot of options is good, but sometimes it could be confusing as well. That’s why it’s really important for you to do a proper research regarding home insurance, go through all the available options so you know which is the right one for you.
Here are different types of home insurance policies available in the market today for you to choose:
HO 1 – This is the most basic home insurance policy that provides coverage for the building as well as the fixtures within it. The insurance will compensate you in case there is any damage to the building or any loss due to criminal acts or weather occurrences. Your valuable items inside the house are protected against ten different kinds of risks, which are explained within the agreement. However, many insurance companies have already discontinued this kind of policy in some states because they found it to be redundant.
HO 2 – This policy is offering a wider protection as compared with the HO 1, because it covers loss or damages to your house and fixtures against 16 different kinds of causes. Some additional causes included are damages due to plumbing system, heating, AC, power outages, and ice.
HO 3 – It’s also known as the special policy because it only focuses on the house structure. It gives protection just about any kind of damage that happens to your house, with a few exceptions explained in the agreement.
HO 5 – This is the most expensive home insurance policy compared to all other types of home insurance policies. This is because the HO 5 policy provides the most extensive coverage. Just about any kinds of damage or loss are covered against any possible factors with the exceptions of floods, earthquakes and war.
HO 8 – This is the most suitable policy for an old house. It doesn’t focus on replacement costs, instead it’s focusing in the market value of the property.
HO 4 – This is most suitable for renters. However in some cases, many apartment and condominium renters also use HO 5 policy.