Types of Home Insurance

In general, there are six different types of home insurance that you can acquire.

HO-1

This policy is quite limited, and has different degrees of coverage for items covered in the policy. You may use this policy for valuable items in your house, such as expensive paintings or rare sculptures.

HO-2

Like the previous type, this is also a limited kind of policy, but instead of specific items, this covers certain portions of your home. The policy also has a list of named perils, and those in the list are the only ones covered.

HO-3

Also known as an 'all-risk' coverage, this is practically the most common home insurance policy being purchased by most. This is because the policy calls the entire home, including its structure, contents, and your possessions. It also covers liability resulting from daily use, as well as accidents that may befall your guests or visitors when they're in your home. Make sure that everything is in writing before signing your policy.

HO-4

Also called renters insurance, this is the most reasonable of all policies, as it costs very little but covers a wide range of conditions. It covers apartments and its contents contained inside. Usually the items on this policy are the ones that are not included in the apartment complex's own policy. This also covers liabilities that result from accidents, including intentional injuries for both guests and passers-by within a 150-inch range from the place.

HO-5

Very similar to HO-3, except it covers a bigger area of incidents and losses that are not included in the HO-3. It mainly covers your home, not a condominium unit or an apartment, you, your possessions, as well as other incidents that may arise. It also includes coverage for your guests and passers-by.

HO-6

Commonly known as Condominium Coverage, this policy was made for condominium owners. It only protects the portion of the building owned by the bearer of the policy, as well as the property enclosed in that portion. This covers situations that are not covered by the usual homeowner's association's insurance.

Mainly, what is covered by this policy is the liability for residents and guests of the policy bearer. Depending on the policy applied for, this coverage may include 150 inches of coverage from the property, as well as possessions in the property, theft, water damage, fire, and other forms of loss.

To determine the exact cost of insurance you need, read the by-laws of your association.