Home insurance types explained

Home insurance comes with many different options that are used to cover just any type of need out there. Depending on your personal requirements there may be a different type of home insurance policy best suited for you. So in order to get your house insured properly you have to learn about the different policy options first.

HO-1 — Also known as the basic home insurance this type delivers coverage against a list of the most common types of damage such as personal liability, lightning, theft, social unrest, explosion, vehicle accidents and others. The policy can be expanded for various types of perils with the addition of riders for each coverage type.

HO-2 — Broader than HO-1 policies this type of home insurance provides coverage in a wider set of situations yet it usually costs more. The general list of perils is the same with the addition of some specific coverage options including rent cost coverage, which applies in situations when you have to rent an apartment or a house while your house is being repaired or rebuilt. The addition of riders is also possible for protecting the house against specific perils.

HO-3 — This type of home insurance provides even more extensive coverage options than the first two types, but for a price of course. The list of perils covered is extended and there are special provisions regarding the contents of the house being covered. This type will best appeal to those who need ultimate home insurance regardless the price.

HO-4 — Renter's home insurance is specifically aimed at those who are renting their homes. While there's a limited coverage regarding the building itself the contents of the house are protected against a set of the most common perils just as in the case of ordinary home insurance.

HO-5 — Premier home insurance policy provides even broader coverage options if compared to the HO-3 policy type. But it usually costs even more.

HO-6 — Home insurance for condominium owners with special provisions with regard to the peculiarity of this home type. All standard perils are included in the covered-against list.

HO-7 — This policy type is designed for older homes that require special provisions. Older constructions usually pose a greater risk to insurance companies while some of them may have a historic value that adds up to the overall coverage amount. That's why there's a separate home insurance policy type designated to older houses.