Homeowners Insurance: What is HO?

By Compuquotes Team on March 27th, 2008
Homeowners Insurance

In the United States, Homeowners insurance policies, also known as HOs, are labeled in different classes of insurance. These labels are the same throughout most of the United States with the exception of Texas. These labels define different levels of home insurance coverage that can be purchased in the United States and are defined by the perils that they cover. There are seven basic kinds of homeowners insurance:

HO-1 is basic homeowners insurance. This home insurance covers the dwelling and the personal property from 11 different perils: fire or lightning, windstorm or hail, explosion, civil commotion or riot, vehicles, smoke, aircraft, vandalism or malicious theft, theft, damage by glass or safety glazing material that is a part of the structure of the building and volcanic eruption. This is the most basic type of home owners insurance that people who own a home will purchase.

HO-2 is basic homeowners insurance plus. This home insurance covers the dwelling and the personal property from the 11 perils in HO-1 and six more: three categories of water related damages from utilities and appliances, electrical surge damage and damage done by the weight of sleet, ice or snow.

HO-3 is an extended policy or special home owners insurance policy. It covers the 17 perils listed in HO-2 plus any other peril that isn't stated in your insurance policy with only a few exceptions: earthquake, flood, war and nuclear accident.

HO-4 is renters insurance coverage for a home. This home insurance covers only the personal property in a home from 17 perils as listed in HO-2. This is the type of insurance you require for your personal belongings if you are renting a home, condo, apartment or town house. The insurance that your landlord carries will not cover the contents of your home, just the building itself.

HO-5 is all risk coverage for personal property and the building. This policy is quite costly and isn't sold very often.

HO-6 is coverage for a condominium. This home insurance covers your personal property for 17 different perils as listed in HO-2 and some building items that the owner of the condominium owner may have insurance interest in.

HO-8 is home insurance for older homes. This home insurance covers the dwelling and personal property from 11 perils as stated in HO-1. It's different from HO-1 because it covers repairs and actual cash values of your home and not the cost of rebuilding. This type of home insurance policy is designed for homes where the house's historical or architectural characteristics make the replacement cost of the home considerably higher than its market value.

As you can see, there is a variety of home insurance policies that are set to meet the needs that you have. Again, these home insurance policy outlines are outlines only-they can be adjusted to fit your needs, added to or subtracted from to completely cover your assets. Talk to your insurance agent or broker about the insurance needs you have for your home. If you have specialty items, such as antiques, jewelry or other items that are of large expense, ensure that you mention these items to your insurance agent. They may need to be covered under their own umbrella policy and failure to tell your insurance agent about pricey items in your home may leave you with those particular items being uninsured and your policy potentially becoming void.

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