By: Staff

The most basic homeowners insurance policy is HO-1, but that policy isn’t even available in some states because its coverage is so limited. For the most part, HO-2 insurance is considered basic homeowners insurance now, and it covers lots of different things. If you’re wondering what basic homeowners insurance covers, here’s a quick list of what HO-2 homeowners insurance will take care of:

• Falling objects; includes damage from the weight of ice and snow
• Damage from water from your home’s plumbing
• Fire
• Smoke
• Electrical damage to appliances
• Theft/burglary
• Vandalism
• Volcanic eruption
• Water heater and heating system ruptures
• Windstorm
• Riot/civil commotion

Beyond this, almost all basic homeowners insurance policies will cover legal expenses if someone sues you for getting hurt on your property, although amounts and limits on this sort of coverage vary from company to company.

If you think this is a comprehensive list of what basic homeowners insurance should cover, you may not be looking at all the angles. HO-3 policies are now the most popular basic homeowners insurance, and they cover pretty much any conceivable damage to your home, and this type of policy is more likely to cover buildings other than the house itself, such as garages and barns.

Basic homeowners insurance may be enough for you, but if you live in an area prone to flooding or earthquakes, you may need to consider getting extra coverage. Some insurance companies will offer this as additional coverage to your basic homeowners insurance policy, but often times, you’ll have to get flood and earthquake coverage through the government.

Also, if you have very valuable possessions, such as jewelry or a card or coin collection, you may have to buy a separate insurance policy for these items, as your possessions may only be paid for up to a certain dollar amount.

The best way to find out what basic homeowners insurance covers is to ask. Look around at different insurance companies, and ask what their homeowners insurance policies cover. You may be surprised at the wide differences; even though basic homeowners insurance will cover the same essential things, different companies will have different caveats and limits, so be sure you know exactly what you’re getting before you sign on the dotted line.

Also, if you’re worried that you won’t have enough insurance to cover you on a rainy day, ask about umbrella insurance. This type of insurance will cover you against liability suits, and in our law suit happy day and age, this might not be a bad idea. Also, umbrella coverage is usually only $200-$300 a year, so the extra couple million dollars in legal coverage could be a worthwhile addition to a basic homeowners insurance policy.

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