By: Staff

If you’re shopping for homeowners insurance for the first time, you may be shocked to see the different types of homeowners insurance there are. This is a complex business, and before you buy a homeowners insurance policy, you need to be sure you understand what the different types of insurance are and what they cover. That way, you’ll know that you’re covered and what’s covered in case the worst happens.

Types of Policies:

HO-1: This is the most basic of homeowner’s insurance policies; in fact, it’s so basic that you can’t even get it in some states because lawmakers don’t believe it protects you well enough. This type of homeowners insurance protects you against only fire and lightning damage.

HO-2: This is a more common homeowner’s insurance policy. It protects your home from all kinds of damage except for those explicitly stated as not covered in your policy. Most homeowners have this type of policy, but you’ll want to be sure that you look over what your policy doesn’t cover, as you may want to supplement the policy to protect yourself against these events.

HO-3: This policy is much like the HO-2, and it’s also very common. However, this type of policy protects not only your home but also your outbuildings, such as barns, garages, and sheds, and the belongings inside your home. Again, be sure that you look over the homeowners insurance policy to understand what is not included in it.

HO-4: This is a policy for a renter that offers protection for your belongings inside a home you don’t own; it may also pay for medical costs associated with things covered under normal HO-2 policies, and it may help cover your living expenses if you have to move due to damage on your rental home.

HO-6: This is a homeowner’s insurance policy for a person who owns a condo unit. The policy will cover the person’s belongings and other parts of the unit that the association doesn’t cover.

HO-8: This is a homeowner’s insurance policy for older homes, which may not be insurable under more traditional insurance policies. For instance, if your kitchen with plaster walls catches on fire, this insurance policy will give you money to replace your walls with modern materials at a modern price.

Besides these types of homeowners insurance, there are also add-ons that can cover expensive or valuable personal belongings like special collection items and jewelry, and there are other add-ons that can protect against things like flooding if your insurance policy doesn’t include that coverage. Each state may have a different designation for these types of insurance, but for the most part, they cover the same things. Before buying an insurance policy, talk with a knowledgeable agent who will be able to get you the coverage you need.

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