Types of home insurance policies for home owners.
Due to the fact that Insurance Service Office (ISO) applies fixed terms for standard home insurance policies, there is not a great deviation in coverage between different companies, but there is a deviation in rates. So, it is suggested to apply various insurance companies and to check for the differences.
You will find that each home insurance policy offers a combination of liability coverage and property and it covers loss caused by damage. Thus, there are different types of home insurance policies, the most common of them are:
HO-1 – is a basic homeowner policy which provides home coverage against 10 listed perils. Pay attention to the fact that this policy has been canceled in majority of states.
HO-2 – is considered to be a broad homeowner policy. It is the advanced variant of HO-1 policy and provides coverage against 16 listed perils.
HO-3 – is an all-risk homeowner policy, which is mostly used for single-family’s homes. It gives coverage for all risks except flood and earthquake.
HO-4 – is a renter’s insurance policy which is the same as HO-2 type but is used for renters only. It covers personal property against 16 perils.
HO-6 – is a condominium policy. It provides coverage for owner’s unit and guarantees personal property coverage, specific coverage of improvement and liability coverage.
HO-8 – is a policy used for older houses. It gives the coverage against the same 16 perils named in HO-2 but covers only repair costs, as it would be too expensive for insurance company to replace the house. It is widely used for older houses with low market value.
