Types of Homeowners Insurance Policies
There are several types of homeowners insurance policies that differ in the amount of insurance coverage they provide. The different types are fairly standard throughout the country. However, individual states and companies may offer policies that are slightly different or go by other names such as “standard” or “deluxe.” People who rent the homes they live in have specific renters policies.
The various types of homeowners insurance policies are listed below.
• HO-3: This is the most common policy and protects the home from all perils except those specifically excluded.
• HO-1: Limited coverage policy This “bare bones” policy provides coverage against the first 10 disasters. It is no longer available in most states.
• HO-2: Basic policy A basic policy provides protection against all 16 disasters. There is a version of HO-2 designed for mobile homes.
• HO-8: Older home Designed for older homes, this policy usually reimburses for damage on an actual cash value basis, which means replacement cost less depreciation. Full replacement cost policies may not be available for some older homes.
• HO4: Renter Created specifically for people who rent the home they live in, this policy protects personal possessions and any parts of the apartment that the policyholder owns, such as newly installed kitchen cabinets, against all 16 disasters.
• H0-6: Condo/Co-op A policy for people who own a condo or co-op, it provides coverage for belongings and the structural parts of the building that they own. It protects against all 16 disasters.