4 Options of Home Owners Insurance Covers to Choose From

As the name suggests, homeowners insurance offers coverage to individuals' residences. However, it is not limited to people who are paying a mortgage, as renters can also get a type of this insurance as well. The common belief is that homeowners insurance is simply in place to protect the house from any natural calamities that may occur. These include tornadoes, fires and even floods. This is not the only thing these policies cover, though.

You can also insure the goods in your home in case they are damaged due to these calamities. Not all homeowners insurance policies will offer these covers, though. Thus, you have to enlighten yourself on what coverage you are getting before you apply for one. Here are the different types of homeowners insurance.

HO1

This type of insurance will cover the house that you own as well as the household items that are in it. These household items could include things such as jewelry, furniture, paintings and so on. Not only does this cover offer reimbursement after damage from a natural calamity, but it also offers protection from vandalism, defacing of your home and explosions. This type of home owners insurance is basic and tends to have affordable premium rates. However, it is only available in some certain states.

HO2

This type of homeowners insurance only covers specific areas of the home. It is best suited for damages that may occur due to things such as sleet, electrical surges, plumbing malfunctions and power outages. It does not offer protection from damages resultant of other objects in the house such as the television or electronic appliances. This type of insurance is best suited for individuals that live in areas that are prone to heavy snowfall or if they live in a mobile home.

HO3

This type of homeowners insurance provides coverage to all aspects of the house, such as its structure as well as the contents of the home. In addition to this, this particular policy will also offer coverage to people who may sustain any injuries while they are on your premises. This type of insurance will also protect your home from any natural calamities that may cause damage to your home.

HO4

This type of homeowners insurance plan is set out for individuals that live in rented homes or are residing in co-operative buildings. It is a great option for individuals who live in disaster prone areas, as it offers coverage for all natural disasters. In addition to that, it offers compensation for your household items that may have been damaged from the natural calamities. Basically, this type of insurance is the rental version of both HO2 and HO3.

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