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Buying a house is one of the major investments you can have. Thus, it is very important to have it protected using the right insurance coverage. If you purchase property insurance, it is better to have knowledge on the different options insurers offer you.
The HO-1 Coverage is what the homeowners usually purchase. It is the most simple type of coverage, covering only the damaged property cause by fire and lightning. Other than this, there’s no other coverage provided. In the future, be careful with the hazards you might face if you are planning to choose this type.
Aside from the HO-1, HO-2 Coverage is much broader. This provides a wide variety of dangers. Aside from fire and lightning, it also covers protection caused by wind storms, hail damage, explosions, vandalisms, and other mischief. They also cover the cost of repairs if the house is destroyed by an automobile or even an aircraft, as well as theft or improper removal of property. It also supplies protection in case the building collapses, frozen pipes, a damage caused by heavy build up of ice or snow and the rift of water-heating systems.
The HO-3 is also called special coverage. It provides protection in all kinds of hazards and destruction, except for those specifically excluded in the policy language. This is one of the most popular types among homeowners. Before you getting this type, make sure to read and the list of exceptions before signing the policy.
If you want to protect your personal property in case you are just renting, then you can choose the HO-4 Coverage. Usually most renters assume that the landlords protect their valuables as well, but this is rarely the case. The property insurance that the landlord carries is only the structure of the building and no personal valuables of the renters included. Your personal belongings can be protected, it even includes liability protection, living expenses and medical costs.
If you live in a condominium unit, HO-6 Coverage is the right one for you. This is usually protects beyond what is covered by the condo association’s policy. It also protects the personal belongings in the condo as well as liability protection for the owner.
HO-8 Coverage is sometimes referred to as older home policy. This type of policy is for those homeowners who think they cannot purchase insurance that requires them to pay for the full replacement cost of the house. It covers the replacement policy that the standard building materials that are used today.
The Umbrella Coverage provides additional protection that is beyond the limit of the homeowner’s insurance policy. This type of coverage can be a cost-effective solution to potential liability. It can also provide $1 Million or more coverage for a very reasonable price. Those who insure their vehicles and their houses through the same policy can cover both with a single umbrella policy.
