Homeowners Insurance Basics -Continued…

By Marcus Masterson | Home Insurance

May 11
Homeowners Insurance Basics quote

Article #2 in a series of (3) covering Homeowners Insurance Basics…

In our last article we discussed what homeowners insurance was, what it does and does not cover and we broke down the types of coverage, such as:

  • Structures
  • Personal Property
  • Liability
  • Additional Living Expenses

Now we're going to go over the different types of homeowners insurance policies.

Types of Homeowners Insurance Policies
Most homeowners coverage is fairly uniform throughout the country except some individual states and companies may offer coverage that have slight differences or go by other names such as “regular” or “super -duper” (you get the point). The state of Texas is one exception.  If you want to know more about how Texas structures and names their homeowners policies, check with the Texas Insurance Department they have detailed information on its various homeowners policies unique to the state of Texas.

The standard names when getting a homeowners insurance quote are:

  • HO-4
    • The HO4-policy is for renters who want to insure their personal property. It covers a policyholder’s belongings against all 16 hazards that HO-3 lists. It also provides personal liability coverage..
  • HO-3
    • This is the most popular coverage.
    • It insures the structure of the home and personal belongings as well as personal liability coverage (typical as we discussed in the first article in this homeowners basics series). It also provides the widest protection, insuring against 16 disasters or perils (risks, hazards, calamaties…etc.) listed below.
      1. Fire or lightning
      2. Accidental release of water or steam from a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance
      3. Sudden and/or accidental explosion, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system
      4. Sudden and/or accidental damage from electrical current (does not include loss to a tube, transistor or similar electronics)
      5. Smoke
      6. Volcanic eruption
      7. Explosion
      8. Windstorm or hail
      9. Weight of ice, snow or sleet
      10. Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance
      11. Damage caused by aircraft
      12. Falling object
      13. Damage caused by vehicles
      14. Riot or civil commotion
      15. Vandalism or malicious mischief
      16. Theft
  • HO-2
    • more limited coverage than HO-3 and for mobile home coverage. Need to check with your local agent or broker to get the details on this coverage.
  • HO-1
    • Think of HO-1 as similar to catastrophic medical coverage. It is BARE BONES and is not available everywhere.
  • HO-6
    • For Condo owners and Co-Op Units. This plan provides insurance for parts of the condo or co-op that the policyholder owns. It protects against all 16 hazards and personal liability coverage. Both cover additional living expenses.
  • HO-8
    • Has specific coverage and language for older homes.