One thing is for sure whether you are a homeowner, an apartment owner or renter, Property and casualty insurance coverage is a most. The type of insurance coverage you get should be based on your individual need. A guaranteed replacement cost type coverage called a HO-3 maybe what you need. Or the renters HO-4 with actual cash coverage, or the step up from the HO-4, the HO-5, with its extended guaranteed replacement cost, or a Condo/Co-op HO-6 policies with extended replacement cost coverage? Well if you are a renter or a home owner these concepts should not be foreign to you, if it is then its time to educate yourself on the fine print of homeowners insurance.In my experience when a homeowner is educated on these matters they are more likely to obtain far better deals from the insurance company. As they say information is power. What is the overall risk that the policy will cover and how much will be paid to cover my losses?
Then there are one of two subcategories that your coverage would fall in hat is the Name Peril and All Peril.
This follow up article will look more closely at the kinds of homeowners insurance policies that are out there and how to choose the one that’s right for you.
Are you a renter, live in a co-op, single family home, or condo owner? If so, then the insurance policy you will need to cover your property and contents is typically termed HO with a number after it.
HO-1 is the standard policy coverage which protects you in the instance of theft, explosion, fire, riot, smoke, hail, lightening, windstorm, damage resulting from vehicles, aircraft, volcanoes, and vandalism.
From the looks of things, this list appears to cover you for just about anything that could go wrong. But this is not so. Dwell on all the “out of no where” scenarios that could crop up that are excluded from the list. Try this on for the unexpected. In the wake of a bad winter, you discover you now have a leaky roof, or your pipes give way causing flooding in your basement. Or your brand new, high speed computer gets fired from a power surge, along with just about everything else in your house. No need to freak out if all you currently have is HO-1 coverage. You can raise your policy to the HO-2 grade.
Moving up from the HO-1 and HO-2 would be the HO-3 to HO-5 homeowners policy coverage. Under the All Peril area I included in Part A of this post, is where you will find HO-3 to HO-5 coverage.While your HO-3 through HO-5 coverages do include all hazards, they do have exclusions listed in the policy that will not be insured. HO-3 to HO-5 insurance policies don’t include coverage for wars, earthquakes, and floods. Looking for insurance to cover you in the event of mold damage. Well, the HO-3 to HO-5 policies may restrict the coverage for mold or not offer it at all.
With a HO-6 insurance policy, condo owners can qualify for coverage that would be similar to a homeowner’s policy. Under the HO-4 Coverage renters would be able to get coverage for their home content. If you are a homeowner and you have had your policy for over 12 years then you could have a named risk policy and not even know it. Check to see if your policy is named risk if it is the change it to a all risk type policy.
No matter what your needs there is a policy that is just right for you. You just have to get a quote from several insurance companies and choose the one home Insurance quote that most closely fits your need.