Guide to Understanding the Various Types of Homeowner's Insurance

There are many different types of homeowner's insurance plans that are available in many states. The coverage plans are specialized depending on the type of house and amount of coverage you are looking for. The coverage plans are called Homeowner's (HO) Insurance with a number next to them. For example the first plan is HO-1.

Different Types of Insurance

HO-1 is a very basic plan, which is only good for protecting your home against fire or lightning. The next coverage plan is HO-2 which is a broader plan. This plan covers your home against Mother Nature's effects such as wind, hail, snow, and sleet. It also protects the home against smoke damage, explosions, and collapsing. If you have a garage or shed that is not attached to the home then you may want to check out the HO-3 coverage.

HO-3 will cover your home as well as detachable structures. This plan is also known as the special plan. The HO-4 coverage plan is known as the tenant's policy because it covers items within the household. If you are living in a condo then HO-6 would fit your needs better. This way your unit will have additional coverage beyond what is included in the condo's association. Finally, if you have an older home then you may want to look into the HO-8 coverage policy.

These are the basic types of homeowner's insurance that you can purchase in the states. You will want to closely look over the plans and policies before purchasing one. Especially look for excluded items such as flood and hurricane insurance. This is especially important if you live in a high-risk area for hurricanes, tornadoes, or flooding.

Finally, you should come up with as many scenarios as you can think of, and check with the insurance representative to see if your home will be covered. This way if something does happen you can be confident that your home is insured.