Homeowners insurance is a great way to protect your family. There are different types of coverage options to choose from. You can choose the option that is best for you and your living situation. Here are some of the most popular types of homeowners insurance. Want to know which option is the best for you? Check it here
Popular homeowners insurance types?
One thing to keep in mind is that you’ll need to purchase different insurance policies for earthquakes and flooding if you live in an area vulnerable to those perils.
HO1 is a basic homeowners insurance policy, and it provides coverage on your home for 10 specific emergencies namely:
3 Aircraft damage
9 Volcanic eruption damage
If something happens that’s not listed on your policy, you probably won’t be covered for it. For example, if your home is damaged due to an overflow of water, you won’t be covered, since it isn’t listed above.
An HO2 policy is a policy that not only covers the perils an HO1 does, but also some extra coverage, including the weight of snow, sleet, and ice. In total it covers 16 perils in addition to the 10 mentioned in HO1 in the basic homeowners’ insurance policy.
The HO3 policy is the most popular homeowners insurance policy since it protects you and your family against several different kinds of bad situations. The different coverage areas in this type of policy include:
Dwelling coverage is pretty standard, and it can be used to guard your home from damages. This includes almost everything attached to your house such as a pool or garage and other structures like fences, sheds, and driveway.
What are “personal” things? Some examples of personal property would be your car, your home, and all the things in it. It also includes anything you own anywhere else (like a shed or a boat). Your homeowners insurance covers these locations as well. So if you take out a laptop from your car and someone steals it, then it’s included in personal property.
Keep in mind that there may be a maximum limit for certain valuable products, like jewelry and paintings. So to make sure you’re getting the proper level of coverage for your high-ticket items, be sure to ask your agent about Extra Coverage when purchasing your policy.
Additional living expenses
If you are unfortunate enough to find yourself living in a home that has been deemed uninhabitable due to a natural disaster or some other type of unforeseen accident, then you would not be spending any more on your insurance than you would on rent. This way, the insurance company will help pay for temporary accommodation and for your basic living expenses.
Liability is the responsibility of someone (or an organization) to compensate or take care of something. In the insurance industry, it means that if person A is injured on business owner B’s property and it’s found to be intentional or caused by business owner B or anyone named on his or her policy, then a claim may be filed with them.
A small note on this one: homeowners insurance only covers injury to others, not yourself.
Personal and medical insurance cover you when you’re sued but not if the person injured is fine with settling out of court. Home insurance does not cover your medical bills but it can come in handy if you injure a guest or happen to hurt some stranger outside of the home.