Different Types of Homeowners Insurance Policies

 Insurance companies these days are offering several different kinds of home insurance policies to their clients depending on their requirements, deductibles and coverage amounts. These homeowners’ insurance policies are offered as packages of different policies making things easier for consumers. There are seven ISO standardized homeowners insurance policies in general that are consistently used. They are as follows:

• HO-1: This is a limited policy offering wide coverage to selective items mentioned in the policy. They do not insure valuable objects as painting in the home. This policy is not offered commonly because the agent selling it would be open to an errors and omissions claim for not providing a better policy knowing that one existed at the time you purchased coverage.
  

• HO-2: Alike HO-1 policy, this policy also covers limited section of the house against damage. They also mention the potential risks against which the house will be insured. This policy is also referred to as “named peril” policy.

• HO-3: Called “open perils” policy this is the most commonly written policy covering all the aspects the house, its structures and belongings in addition to the liability protection and additional expenses. This is a common homeowners policy today. The kind offered in most casees when you say "I need a home owners policy".
  

• HO-4: This policy is specific to renters and apartment dwellers who do not own the unit they reside in. Definitely a bargain, you should not be without this policy if you rent an apartment, condo, townhouse, or just the basement of someone's home. Their policy will not cover your belongings and likely they will disclaim any knowledge of your residing their should a loss occur. It usually includes a liability component to protect you from lawsuits for covered incidents.
  

• HO-5: This policy for home only covers the homeowners, their assets and all liabilities arising from visitors or passers-by. Unlike HO-3 this policy provides wider coverage on various happenings and losses. This wider coverage comes at a much greater cost.
  

• HO-6: Known as “Condominium Coverage” this policy is particularly designed for the condos owner. The part of the building owned by the insured and the included property are covered under this policy. In most condominiums, you own everything attached to the walls- the counters, the sink, the cabinets, shades, wallpaper, etc. You must take additional coverage called "additions and alterations" to be protected for these items as the standard condo policy only covers a few thousand dollars.
  

• HO-8: This policy provides benefits to homeowners with higher replacement cost than the market value by ensuring them at minimal market value rate. Hence this policy is aptly known as “older home” insurance policy. A manor house from the 1800's would commonly have a policy such as this since the craftsmanship is far outside todays stick standards.
  

 With a wide variety of insurance types and coverage available understanding the differences is crucial in making a wise choice to ensure adequate coverage at the best possible rates. The home insurance policies provide protection to you and your home from all insurable catastrophes.

Whether you buy or rent a home, insurance is a must.