Homeowners insurance protects your home against fire, theft and other damage. There are different types of homeowners insurance—known as HO-1 through HO-4—that you can choose from depending on the size of your home, its contents and local real estate laws. Here’s what you need to know about each type:
HO-1, also known as homeowners insurance, is the most basic form of home insurance. It covers your home against damage from fire, wind and hail, and other disasters. It also covers your belongings against theft or damage from fire or smoke. HO-1 even protects you if someone is injured on your property!
If you have HO-1, it’s time to get serious about protecting yourself from losses like these:
- If a tree falls through your roof and damages the inside of your house
- If someone breaks into your home while you’re away on vacation
HO-2 is a homeowners insurance policy that provides coverage for your personal property, liability and additional living expenses. Additionally, it covers flood and earthquake damage if you live in an area prone to these natural disasters.
Additional coverages include theft of jewelry and furs, vandalism and malicious mischief, loss of use.
Homeowners insurance covers the structure of your home, the contents of your home, and any personal liability claims. It’s what you buy to protect yourself from property damage and lawsuits.
The Ho-4 policy is a homeowner’s insurance policy that covers four categories: building, contents, personal property and additional living expenses. With this type of policy, you’ll be protected from the wide range of disasters that can occur at home.
What does a Ho-4 homeowners insurance policy cover?
- Building coverage: This part of your policy provides protection for your house itself, including garage doors and other components attached to the structure. If any part of your house is damaged due to severe weather or other events that result in damage or destruction (e.g., fire), this coverage will help you rebuild it or receive funds to settle a claim with an insurer if needed.* Contents coverage: This covers items inside your home—furniture and appliances included—in case they’re stolen/lost/damaged beyond repair as a result of certain events like theft or explosion.* Personal property coverage: When someone steals something important from inside your home—your car keys maybe? Or maybe even some jewelry!—this type of policy helps pay for their replacement value.* Additional living expenses (ALE): This part kicks in when there’s an unexpected disruption in housing caused by an insured peril like fire or storm damage; ALE pays for temporary lodging until repairs are made so homeowners can move back into their homes
Everyone needs some kind of homeowners insurance.
Many people choose to forgo homeowners insurance and instead pay for repairs out of pocket. However, this can be a risky move; without any insurance coverage, you’re on your own if something happens that requires major repair work or replacement. It’s better to buy some kind of coverage than to have no protection at all. For example, suppose a tree falls and damages your roof while you’re away from home one weekend. Without insurance in place, you may have to pay thousands of dollars in order to fix the damage before winter sets in!
If you do decide that buying homeowners insurance is right for you and your family, keep these things in mind:
- You can get free coverage through certain government programs such as the Military Homeowners Assistance Program (MHAP) or the Veterans Affairs Supportive Housing program (VASH). If those don’t apply to you but still want free homeowners insurance, make sure it’s not going toward paying someone else’s medical bills—a common scam among scammers hoping people won’t notice their names are being used without their consent!
There are lots of different types of homeowners insurance out there, and it can be confusing to figure out which one is right for you. If you’re trying to decide what kind of homeowners insurance is best for your family, check out our blog post on the different types—and what they cover!