Purchasing a home insurance is of great importance just like the purchase of a home. Buying a house is a major financial investment and it is extremely essential to make sure that the home, contents and the property are protected. There are many types of house insurance policies offered in the market. The major types of the policies are mentioned below.
HO-1 is one of the most important types. This basic policy protects the house against the damages caused by fire and lightening. Another feature of the policy is that it covers valuable items like jewelry.
HO-2 is a policy that offers broad coverage. The coverage offered by the policy includes damage from rain, smoke, wind, vandalism, hail, theft, removal of items and explosion.
HO-3 is a special form of policy that is called as 'open peril' or 'all risk' insurance. This policy covers the home against loss or damage. The exclusions that are listed in this policy must be read carefully so that you can be sure that the important items are not excluded.
HO-4 is known as a tenant's insurance policy. This policy insures the personal items and contents against the situations mentioned in the HO-2 policy. Another attractive feature of the policy is that it covers the supplementary living expenses including the medical payments. It provides liability protection too.
HO-6 is a policy offering coverage for the condominium owner for covering the items that will not come under the coverage of condominium association policy.
HO-8 is normally referred as an 'older home' policy.
If the house you own is an old one, most of the policies will not offer replacement coverage. This policy is to overcome that limitation.
Having a better understanding of these policies can help you in making the right decision regarding the home insurance policies.
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