Home Insurance

There are various benefits of protecting your home with home insurance and not doing so could have devastating consequences. Your home is more than likely your largest investment and so it is important to protect it with homeowner’s insurance in the event of a disaster or other type of loss.

When you have home insurance, your home will be covered in the tragic event of a fire, just to name one instance. While you may lose things that money cannot replace, such as pictures or mementos, you would be able to repair or rebuild your home with the proceeds from your homeowner’s insurance.
If your home were broken into and damaged or robbed, or both, you would want to make a claim on your home insurance. Having adequate home insurance coverage would mean that you could repair any damage caused to your home from a break-in and you could also file a claim as to the missing items in your home. While you would be sad and in all likelihood, angry, it would help that you would be able to file a claim and get the value of your stolen items.
Home insurance may not magically make everything all right again but it sure does help lessen the impact of your loss.

Home Insurance Categories

Homeowner’s insurance (HOI) is insurance that consists of property and liability coverage to protect private homes and its contents. It also provides protection for the expenses incurred as a result not being able to use the home; also, it offers liability insurance to cover any accidents that may occur at the home, and the medical expenses associated with the accidents.

In order to obtain coverage, one of the named insured persons must live in the home. Homeowner’s insurance is divided into several categories ranging from HO1-HO8.
Listed below is a brief explanation and description of each homeowner’s insurance categories:
•HO1 - Basic Homeowner Policy
This policy protects the home and its contents in the event of any of 11 listed threats occur. These threats include personal liability, smoke damage, fire, lightening, vandalism, theft, windstorm or hail, damage from vehicles, and aircraft, civil disturbances, volcanic eruption, and glass breakage. Neither floods nor earthquakes are included in this category of coverage

•HO2 - Broad Homeowner Policy
Also known as a “named perils policy, protects the home against 17 listed threats, including the 11 listed in category HO1.

•HO3 - All Risk Homeowner Policy
This policy is known as an “all risk” policy which covers all risks to the home except earthquakes and floods, power failure, neglect, war, nuclear explosions, intentional damages, and loss caused by two or more perils.

•HO4 - Renter's Insurance
This policy is for renters, and it covers the same threats listed in the Broad Homeowner Policy (HO2).

•HO5- Broad Comprehensive Policy
This policy is similar to category HO3 as it covers all risks except the normal exclusions including floods and earthquakes, power failure, neglect, war, nuclear explosions, intentional damages, and loss caused by two or more perils. The difference between HO3 and HO5 is how the damages to personal property is reimbursed.

•HO6 - Condominium Policy
This policy protects condominiums and its contents. This policy is meant to complement a policy maintained by the condominium’s association covering the building and its common areas.

•HO7 - Mobile Homes
Mobile homes are both vehicles and property. As a result, they require a different kind of coverage. HO7 is designed for this unique type of home.

•HO8 - Older Homes
This coverage is also known as “modified coverage.” It protection is similar to HO1 except it allows repair costs and cash values to be awarded instead of replacements. This coverage is for older homes with a fair market value less than the cost to replace the home.

When choosing any HOI, it is important for consumers to research the best options their particular needs and circumstances.