You aren’t alone if you can’t decide if you should purchase homeowners insurance. While most property owners in the United States have insurance, 5% don’t, equating to around 86 million people.
As a homeowner, you want to do everything you can to protect your investment and property, but you also don’t want to waste your money. With so many options, it’s challenging to know which type is worth purchasing.
In this article, you’ll learn about the different types of homeowners insurance. By the end, you’ll have all the information you need to make an informed decision about insuring a house.
The first type of homeowners insurance we are going to talk about is HO-2; we are shipping HO-1 as it’s the most basic option, and many insurance companies don’t offer it anymore. The HO-2 policy is fairly broad and covers a number of different things including fires, theft, riots, smoke and weather damage, and vandalism.
It will also cover if your home is damaged due to the weight of snow and ice and if your pipes freeze. Keep in mind coverage can vary from company to company. This policy is more common than HO-1; however, many homeowners opt for higher coverage.
This homeowners insurance policy is the most common as it covers more than HO-2. Under this policy, your personal items will be covered up to their cash value, while your home will be covered up to the replacement cost.
Before buying insurance, it’s important to know that flooding is not covered under this policy and you’ll need a separate policy for that or talk to your provider about adding it if you’re in a flood zone. However, water damage from a broken water heater or HVAC system will be included. Sinkholes and neglect are also not included.
One of the most popular types of homeowners insurance is HO-5. This option is one of the biggest coverage for single-family homes. It covers everything Ho-3 does with a few extra things.
If you have high-valued personal items in your home such as jewelry or art, this is going to be a great option for you. This policy covers your property and personal belongings at their replacement cost, which is slightly different than HO-3
HO-6 and HO-7
If you own a condo, you’ll likely be required to get protected with insurance by the Homeowners Association (HOA). HO-6 is specifically for condominiums. HO-7 insurance is for mobile homes as they are not covered under HO-3 and HO-5.
Types of Homeowners Insurance
Unexpected events happen every day; sometimes these events are out of our control. Having homeowners, while it is an investment, will give you peace of mind as you go through life.
You can feel protected and safe even when you aren’t home. Now that you know about the different types of homeowners insurance, you can choose the best one for your home.
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