Levels of Homeowners Insurance

By Compuquotes Team on March 27th, 2008
Homeowners Insurance

There are basically eight different levels of home owners insurance that you can purchase. Home owners insurance protects the home you live in and / or the contents of your home. In the United States, there are varying degrees of insurance coverage to choose from so that you can get the right home owners insurance for you and your situation.

Home owners insurance protects your investment that you have made in your home as well as everything that is inside of it. It protects you from perils - events - that damage or ruin your home. Let's look at the eight levels of home owners insurance and what they cover.

HO-1 or Home Owners One, is a limited policy. Home Owners One only provides insurance coverage that you outline in details in the policy. This is insurance for that priceless artwork in your home, but won't cover any other damage or loss in your home. Most people use Home Owners One as extra insurance to cover the loss of valuable possessions.

HO-2, or Home Owners Two, is also a limited type of insurance policy. The Home Owners Two policy will cover portions of your house against damage from perils that are named in detail within the home owners insurance policy. The perils that are covered are listed in the policy, such as damage from fire or loss from theft and will not cover loss or damage done by other means.

HO-3, or Home Owners Three, is the most common in home owners insurance taken out in the United States. Home Owners Three coverage extends to all of your home's structure and the possessions contained within it. Home Owners Three also covers you for personal liability that can happen in regular daily use or for people/guests that are hurt on your property or have an accident on your land. The coverage will be detailed in the policy and you should read the policy to make sure that you have an understanding of what is covered with your home owners insurance and what isn't. For example, damage due to floods or earthquakes is probably not covered in your Home Owners Three policy as those particular damaging events require their own special insurance. Home Owners Three insurance is also known as �all risk coverage' or �open perils policy'.

HO-4, or Home Owners Four, is renter's home insurance and only covers the possessions in your residence but does not cover the structure itself. This coverage can also cover personal liabilities that happen within your dwelling.

HO-5, or Home Owners Five, is very similar to Home Owners Three coverage. Home Owners Five will provide coverage for your home, but does not include condominiums or apartments, and does not include the contents or any personal liabilities that may happen. However, Home Owners Five covers a wider range of incidences and losses to the structure of a home than a Home Owners Three policy does.

HO-6, or Home Owners Six, is better known as insurance coverage for people who own a condominium/condo. The insurance coverage extends to the portion of the structure that you own and the possessions of yours inside the condo.

HO-7, or Home Owners Seven, is home owners insurance for mobile home owners.

HO-8, or Home Owners Eight, is home owners insurance for homes that are older. These older homes typically have a replacement cost that is considerably higher than the actual market value and are insured at the lower market value rate.

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