Types of Home Insurance Policies You Should Know About
When selecting home insurance, it’s essential to understand the different policy types available to ensure your property is adequately protected. Robert O. Mable Agency provides home insurance policies in Hobart, Margaretville, NY, Walton, Oneonta, Delhi, NY, Andes, NY and surrounding areas.
These are the primary types of home insurance policies:
- HO-1 (Basic Form)
This is a minimal coverage policy that covers specific perils such as fire, theft, and vandalism. It’s often less popular due to limited protection and may not be available in all states.
- HO-2 (Broad Form)
An HO-2 policy offers a step up from HO-1, covering a broader range of risks, including damages from falling objects, accidental discharge of water, and electrical surges. It’s more comprehensive than HO-1 but still provides named-peril coverage, meaning it only covers specific risks listed in the policy.
- HO-3 (Special Form)
HO-3 is the most common home insurance policy. It provides coverage on an open-peril basis for the structure, meaning it covers all risks except those explicitly excluded. Personal belongings are typically covered on a named-peril basis. It offers broad protection for the home and belongings.
- HO-4 (Renter’s Insurance)
Designed for tenants, HO-4 policies cover personal belongings and liability but not the structure itself. This is ideal for renters, as it offers coverage for possessions and liability if someone is injured in the rental space.
- HO-5 (Comprehensive Form)
HO-5 is the most extensive coverage for homeowners, providing open-peril coverage for both the structure and personal belongings. It’s similar to HO-3 but with fewer exclusions and broader protection.
- HO-6 (Condo Insurance)
Specifically for condo owners, HO-6 policies cover personal property and the interior of the unit. The condo association typically covers the exterior structure and shared spaces.
- HO-7 (Mobile Home Insurance)
HO-7 policies cover mobile or manufactured homes, offering similar coverage to HO-3 policies but tailored for mobile home structures.
- HO-8 (Older Home Insurance)
This policy is for older homes with high replacement costs due to construction styles or materials no longer in use. It provides similar coverage to HO-3 but may compensate on an actual cash value basis rather than replacement cost.
Each policy has its specific scope, so assess your property’s needs and budget to choose the best fit.
Should you have any questions, feel free to give us a call.
