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In 2020, on average, every 89 seconds, a house fire was reported in America.
You should consider investing in a homeowners insurance policy to mitigate this risk. The idea is to have the insurer compensate you for any home damages you suffer. That’s why you should strive to find the best homeowners insurance coverage for your needs.
So, how do you choose this policy?
Read on to discover the different types of homeowners insurance that exist today.
The HO-1 is the most basic home insurance coverage that only protects you against basic risks. And that’s why most homeowners ignore this policy as it doesn’t meet their needs. Given the low demand for the HO-1 policy, most insurers are no longer offering it.
The HO-2 insurance is an improvement of the HO-1 policy as it covers more things. On top of the things, the HO-1 covers the HO-2 insurance offer includes risks such as falling objects and freezing. As a smart homeowner, reach out to experts such as Property Insurance HQ for more advice on this policy.
The HO-3 coverage protects you from broader risks such as earthquakes, floods, and landslides. Many homeowners prefer this policy for its broad coverage. So, look for resources that guide you to find the best homeowners insurance that offers this policy.
The HO-4 policy is designed for people renting apartments and is often referred to as renters’ insurance. The purpose of this policy is to protect your personal property when you’re a tenant. So, even though the landlord has a property insurance policy, it’s wise to invest in the HO-4 policy.
The reason is that the landlord’s insurance doesn’t cover your personal properties.
Comprehensive Home Insurance Policy (HO-5)
The HO-5 policy has similar features to the HO-3 insurance but has added protection. On top of covering your house, it also includes valuable items such as electronics and jewelry. The comprehensive home insurance policy is the highest level of coverage.
Unit-Owners Insurance (HO-6)
If you own a condominium unit, the HO-6 insurance is the right coverage. This policy offer protection against loss of use and personal liability. Note that you don’t need the HO-6 insurance; instead, you need a renters’ policy.
Mobile Homes Coverage (HO-7)
Many mobile homeowners are quick to assume that insurers don’t offer a policy suitable for them (yet they do). The ideal for these homeowners is the HO-7 policy. With this policy, you get the same coverage as the HO-3 policy.
Modified Coverage (HO-8)
The modified coverage (HO-8) is a homeowner’s insurance policy designed for people who don’t meet the requirements for other policies. These people own properties with a high risk of damage. So, by getting the HO-8 policy, they get the same protection as homeowners with HO-1 insurance.
Compare Different Types of Homeowners Insurance to Pick the Best One
To protect your home from various hazards, it’s prudent to invest in homeowners insurance coverage. That’s why you should compare the above types of homeowners insurance. You want to pick an insurance policy that best fits your needs.
Please see our other articles for Real Estate, Interior, and Exterior Home Improvement tips.