Understanding Home Insurance

Home insurance is a common type of property insurance that covers private homes. Also known as homeowners insurance, this type of policy is usually a combination of several personal insurance protections.

A home insurance policy can provide protection primarily for losses that occurs in one's home which includes its contents and other personal possessions as well as loss of its use. Home insurance can also cover for liability insurance for accidents that can happen from within the home.

Types of Home Insurance

There are various types of home insurance available for homeowners in the United States. They are different policies meant to provide various degrees of coverage for a home. They provide a choice for homeowners as to what type of policy will allow them the best home insurance coverage.

HO-1 Policy

This is a limited policy that only covers only the items specifically listed in the policy. They offer varying degrees of coverage depending on the value of the item in question. The HO-1 policy is usually used to cover valuable items found inside the home such as a prized painting.

HO-2 Policy

This is also a limited policy that is taken to cover for specific areas of the home from damage. The HO-2 coverage is considered a "named perils" policy in that it also lists the events that should only be covered by the policy.

HO-3 Policy

This is one of the most common policies for homeowners. The HO-3 policy covers all aspects of the home including its structure, contents as well as any liability that may arise from its use. The HO-3 is more commonly referred to as an "All risk" or "open perils" home insurance policy.

HO-4 Policy

This policy is more commonly referred to as renter's insurance. The policy usually covers the apartment as well as its contents that were not previously covered by the insurance policy of the whole apartment complex.

This policy can also cover for liabilities due to accidents and injuries for guests as well as passersby within 150 feet of the covered apartment.

HO-5 Policy

This policy covers a home that is not considered as either an apartment or condo unit. It can cover the home itself, the contents, as well as any liability that may happen to visitors or passers-by. The HO-5 covers a wider range and depth of incidents compared to an HO-3 policy.

HO-6 Policy

This policy is a supplemental home insurance that is also known as the Condominium Coverage. This policy is designed for condominium owners. It covers the condo unit as well as the contents and usually fills the gap that the home owner's association blanket policy might not cover.

HO-8 Policy

This policy is meant to cover older types of homes. It can be difficult for some old homes to purchase home insurance policies. The HO-8 policy makes it possible for owners of old homes to provide coverage to their property that other policies may not accept.