|
|
|
« Back to Articles |
Next Article » |
Article 2 of 2 in Types of Insurance Packages |
The basic coverage types in homeowners’ insurance packages |
 |
Insurers in most states use a number of standard forms for the various homeowners’ coverages. Here’s a list of the most commonly used forms:
- HO-1 is very basic coverage, insuring against fire or lightening damage.
- HO-2, called “broad coverage,” also covers loss of or damage to property resulting from windstorm or hail, theft, explosion, smoke damage from vehicles and aircraft, glass breakage, removal of property endangered by covered peril such as fire, vandalism, malicious mischief, and riot or civil commotion. HO-2 also covers building collapse, freezing of or accidental discharge of water or steam from within plumbing, heating, or air-conditioning, falling objects, weight of snow, ice, or sleet, and rupture or bursting of steam or hot water heating systems.
- HO-3, called the “special” form, insures your home and detached structures against loss or damage from any peril except for those specifically excluded in the policy. This is the policy most homeowners purchase. It is important for you to read your policy carefully to see what is excluded—you may want to cover exclusions with special endorsements.
- HO-4 is a tenant’s policy and insures your household contents and personal belongings against the perils of the HO-2 policy. It also covers additional living expenses if needed, medical payments, and also liability protection.
- HO-6 covers a condominium unit-owner who wishes to insure items not insured by the association policy, as well as the personal property inside the unit and personal liability protection.
- HO-8 is the “older home” policy. Having an older home may preclude your being able to buy a replacement policy; you may have to buy a modified replacement policy instead. This means that instead of replacing such older home materials as plaster walls for example, the policy will pay for standard building materials and processes in use now.
Some states designate their forms differently, using such titles as HO-A, HO-B, etc. but the coverages are generally the same.
Make sure you are covered! As you can see, insurers use a lot of forms. Now that you know what they mean, make sure you have the right coverage for your home and shop around for the best homeowner's insurance rates.
For information about insurance law, check out the FreeAdvice Insurance Law FAQs. |
« Back to Articles |
Next Article » |
|
|
|
|
|
Home Owners/Renters Insurance Center
Auto | Homeowners/Renters | Health | Life | Site Map | Privacy Policy | Media | About Us | Contact Us