Are You Shopping For Homeowner’s Insurance?

Posted by Insurance Advice on November 20th, 2007 at 06:08am

Are shopping for a homeowner’s insurance policy that matches your requirements? There are eight standard homeowner’s insurance policies available and apart from that every insurance company has their own clauses, riders and other inclusive benefits.

The home is where the heart is but today homes come with a statutory warning: it can be prone to any kind of damages from ecological disasters to theft, fire and ageing. The best shield you can think of in such a volatile environment is homeowner’s insurance. Also known as hazard insurance or home insurance, the homeowner’s insurance is available in different category and each category covers damages as mentioned in the policy. The aim of a homeowner’s insurance policy is to provide cover against damages to your home as well as the personal belongings inside your home.

Why you should have Homeowner's insurance! :)
Photo credit: nhillen, Flickr

Let us take a quick look at the different types of homeowner’s insurance policies available to choose from:

Homeowner’s insurance – 1 (HO-1): This homeowner’s insurance policy provides limited cover i.e., it will provide coverage only on those items, which are mentioned in your policy. This type of homeowner’s insurance policy is used for providing cover to valuables like rare painting or jewelry etc.
Homeowner’s insurance – 2 (HO-2): The HO-2 is quite similar to HO-1 as it provides limited coverage to specific parts of your home against damage. The policy mentions these specific parts of your home under named perils.
Homeowner’s insurance – 3 (HO-3): This is like a comprehensive policy as it covers damages caused to your home, as well as the content inside. It will also cover injury caused to any visitors who meet with an accident on the premises. This type of homeowner’s insurance policy is also known as an open peril policy.
Homeowner’s insurance – 4 (HO-4): This homeowner’s insurance policy is also known as renters insurance. It will cover only specific aspects of a home or apartment, which have not been covered under the blanket policy, which is valid for the entire apartment complex. This homeowner’s insurance policy can provide coverage for injuries caused by accidents within the premises of that particular apartment. Some of the most common aspects covered by this policy include damages or injury due to riot, vandalism, lightning, explosion, theft, fire, smoke, windstorm or hailstorm, snow and falling objects.
Homeowner’s insurance – 5 (HO-5): This homeowner’s insurance policy is similar to the HO-3 policy. The only difference is that it is more comprehensive in its coverage.
Homeowner’s insurance – 6 (HO-6): This homeowner’s insurance policy is also known as the Condominium Coverage and as the name suggests, it has been created especially for condo-owners.

These are some of the most common homeowner’s insurance policy but before you take a decision, walk over to an insurance agent and get more information regarding the benefits each of these policies may provide.