Different Types of Homeowners Insurance Part 1

There are various types of homeowners insurance. to help you cover your home and personal belongings in case they’re damaged by fire, wind, storm, or theft. Here are the various types of homeowners insurance you can get:

HO-3 Insurance

These are also known as special form insurance, and they are the most common you’ll come by in your search for the right homeowners insurance policy. It accounts for almost 80% of coverage on homes in 2017, according to the National Association of Insurance Commissioners. For those who have a mortgage, this is often the insurance that your lender will require you to have.

HO-3 insurance covers everything except for things the policy specifically includes like an earthquake or a flood. Here are some things that this type of insurance will cover, courtesy of Nerd Wallet:

Fire or lightning.
Smoke.
Windstorms and hail.
Explosions.
Riots.
Damage from aircraft.
Damage caused by vehicles.
Vandalism.
Theft.
Volcanic eruptions.
Falling objects.
Weight of ice, snow and sleet.
Water overflow or discharge from household systems like plumbing, air conditioning and appliances.
Freezing of those same household systems.
Sudden damage from a power surge.
Sudden tearing, cracking or bulging of a hot water system, steam system, air conditioning or fire protective system.

HO-5 Insurance

This is the broadest type of homeowners insurance that you can purchase for your home and possessions. This policy is sometimes called premier or comprehensive coverage, however, make sure you read all the details about your policy. Some companies might call a coverage premier, but it isn’t actually HO-5 coverage. This is also usually the most extensive type of coverage that you can purchase as a homeowners policy, with about 17% of people choosing this type of coverage in 2017 according to the National Association of Insurance Commissioners. This is the best type of insurance for a well-maintained home that is in a low risk area, but keep in mind that not all insurance carriers will provide this type of coverage.

HO-1 and HO-2 Insurance

This limited coverage is a less popular option for insurance coverage for homeowners insurance. These types of insurance will only pay for damages that are specifically listed in the policy. HO-2 is more common than HO-1, which is the rarest of all the different types of coverage. HO-2 will usually only cover the basics within 16 of the previously mentioned damages, while HO-1 is the most bare bones option for an even shorter list of damages than HO-2.