Difference Between Various Homeowners Policies

A home is a place where we all feel safe and protected. A dwelling where we can find our peacetime and coziness. But have you ever thought what happens if you lose your shelter? To avoid such situation, we make every possible arrangement.
An insurance policy act as an umbrella to save you and your belongings. There are various types of insurance policies available in the market to choose. One thing to make clear that all these policies do not cover all type belongings. All you need to do is to choose the insurance policy which is most suitable for you. In this article, we are going to discuss various forms of insurance policies that are available for homeowners.

home at sunset home insurance - Difference between various homeowners policies

Insurance policies for individual homes:
HO-1 (Homeowners 1):

The most basic form of insurance which provides the limited coverage against the list of perils including:

  • Lightening and fire
  • Hail, volcanic eruption and windstorm
  • Riots
  • Explosions, theft
  • Aircraft, vehicles, vandalism, and smoke
  • This insurance policy does not cover the belongings in the home

HO-2 (Homeowners 2):

This form of insurance policy covers the personal belongings present in the home as well. However, like HO-1 this policy type covers only those hazards explicitly mentioned in the list. Various perils which make the list of coverage includes

  • Water and plumbing damage
  • Damage caused by the falling objects
  • Air conditioning and heating damages
Save on your home owners insurance 1 - Difference between various homeowners policies

HO-3 (Homeowners 5):

This type of policy is high in demand due to its broad coverage. It covers every peril mentioned above. However, it only excludes the perils stated below

  • Earthquake
  • Mudslide
  • Landslide
  • Nuclear accident

HO-5 (Homeowners 5):

Like HO-3, HO-5 also covers almost every peril until unless excluded explicitly. But unlike HO-3, HO-5 provides a more comprehensive insurance coverage for personal belongings. Due to the extent of coverage this policy is much costly than any other policy.

HO-8 (Homeowners 8):

An HO-8 insurance form is specially designed to ensure the homes which have more replacement cost than the actual market value of the home. Particularly in this category, we treat architecturally momentous structures and landmarks.

Insurance policies for rent out property:

HO-4 (Homeowners 4):

If you have a personal property in any of rented homes, then this policy is just the right thing for you. This insurance policy is specially designed to give the damage coverage to the tenants.
Insurance for Co-Ops and Condo:

Keep your home safe - Difference between various homeowners policies

HO-6 (Homeowners 6):

HO-6 insurance policies are designed for the Co-Ops tenants or condo owners. Condos are treated as single homes so when it comes to insurance policy the policyholder owns his or her unit. So whenever you are living like this, and you have insurance to sign, always make sure that the insurance policy covering your unit is appropriate.
However, in case of Co-Ops, they are considered the tenant and thus does not hold their specific unit. Although they are the tenants, still they do not need a renter’s policy because of their stake in the ownership of the property.

Another form of insurance policies:

Although these are the most basic forms of insurance policies available for the homeowners, still there are other policies including

Homeowners’ association insurance- provide coverage for housing complexes.

Life is unpredictable, but we can at least make certain arrangement to get help when things go wrong. Whether you are an owner or the tenant an insurance policy, a must have a thing for you.

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