Exploring The 3 Main Types of Home Owner's Insurance

By Todd Sherwin


When hunting for homeowner's insurance, be conscious of the various kinds of household insurance so you are not duped into buying a cheaper policy but has a lot less coverage or protection. Also, be aware that pricing will vary, for example California home owners insurance will more than likely cost more than Nevada home insurance.

1. Basic Form of home owners insurance - HO1

* The HO1 Basic Form has limited protection that includes fire, lightning, vandalism, theft, and evil mischief.

* Sometimes this form only will cover Actual Cash Value (ACV) of your home rather than replacement cost, which means if your house is older the insurance corporation may depreciate the payment amount.

2. Broad Form of home owners insurance - HO2

* The HO2 Broad Form includes the losses mentioned in the HO1 Form and also includes coverage for falling objects, water damage from pipes or utilities, ice/snow damage, and electric surge.

* Unless you specifically ask for reduced coverage, this form usually is for replacement cost of your house. You'll get up to 150% of the full cost to build your house, dependent on your nation's guidelines and your selections.

3. Special Form of home owner insurance - HO3

* The HO3 Special Form provides much more intensive coverage called "All-Risk". Unless there is a stated exclusion on your policy, it is covered. Your personal effects will have broader protection.

* This coverage is a bit more expensive than the other 2, but if you'd like to have the best home insurance protection, this is it.

As you can see, there is a huge difference between Home owner Policy options. Do not be duped into purchasing a cheaper policy that gives you a lot less protection. Make sure you are getting the best protection for your insurance buck.




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