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What are different types of homeowners insurance
This is probably one of the questions most frequently asked by people who are planning to purchase this insurance.

    What Are Different Types Of Homeowners Insurance?

    Inadequate knowledge about the types of this insurance will lead to purchasing the wrong one which doesn’t suit your needs. Some are not even aware of the existence of many types of homeowners insurance. Generally, there are about six types of HO (Homeowners) insurance. All of them are very important, but the most commonly purchased are HO-3, followed by HO-4 and HO-6.

    HO-1 Insurance:

    HO-1 is provides different levels of coverage but is limited to actual cash coverage on what stated in the policy only. This policy can be used for certain valuables in home such as art or particular types of jewelry. HO-1 amended policies gives more protection compared to the base of HO-1. It has lesser protection in comparison with HO-2.

    HO-2 Insurance:

    HO-2 also provides limited coverage. It is normally a “named perils”, which will cover any situations listed in the policy. It provides coverage for replacement cost for most of the insurable perils, except for exclusions.

    HO-3 Insurance:

    As stated above, HO-3 is the most common policy purchased. This is because it provides very extensive coverage of your home, such as its structure and contents inside. It also gives protection to cases that might occur in our lives everyday. For example, if the guests in your house are injured during their stay in your home, this will also be covered in the policy provided that this term is listed clearly there to ensure appropriate coverage. Since it covers a large area of your homeowners insurance, it is usually called as “all risk” policy.

    HO-4 Insurance:

    HO-4 is a policy highly recommended for people renting apartments since it is ordinarily known as renter’s policy. Some parts of living accommodation and its contents are not spelled out in blanket policy which is written for the renter’s complex. Therefore, HO-4 acts as protection for these parts that are not properly listed. For instance, visitors or anyone passed by and unfortunately hurt themselves in the premises of the renter; they are being covered by this policy as well.

    HO-5 Insurance:

    HO-5 is something similar to HO-3, but different in terms that it has better protection than HO-3. It covers larger area of incidents and losses with wider boundaries. This policy covers the home, its owners and its properties inside as well as liability that might arise from outside people like guests or passer-bys.

    HO-6 Insurance:

    Finally, HO-6 is a policy specially designed for condominiums’ owners. These owners have special needs compared to other types of houses’ owners. It covers the building closely-held per insured and also the contents inside the home insured. Like some of the policies mentioned above, HO-6 protects the permanent occupants of the home as well as their visitors occasionally. It also provides protection for claims made for mishaps occur between 150' from the insured belonging. Furthermore, the properties in the home are also protected from fire, thefts and also other forms of loss that might incur in the future.

    As you get to know what are different types of homeowners insurance, you will be in a better position to choose a policy which suits your needs to protect your home and its contents.

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