Types Of Homeowners Insurance

Having a home is great, and you won’t want to lose it ever so you will want to get any of the many types of homeowners insurance. You see, there are many types of homeowners insurance that you can get. Your home is very important to you and your family. This being said, you will want to do everything that you can in order to make sure that you will be able to keep your home no matter what happens.

The HO-1 types of homeowners insurance are said to be the bare bones type of insurance policy for the home. There are actually many states that have discontinued this home insurance policy. Basically, this is an insurance policy that can cover the expenses for different kinds of perils. There is a list that will give a better idea what these perils are. The point is that if any of these perils occur to your home, then you will be able to claim your insurance money. Liability insurance is also covered in HO-1. When it comes to properties, liability pertains to accidents that will happen on your property.

The HO-2 types of homeowners insurance are the ones that will cover the expenses when something happens to your home, personal property, liabilities, and all other buildings in your property. Much like the HO-1, there are also different kinds of perils listed here. But the list is a lot longer and broader than that of HO-1. If the insured, for some reason, needs to move out for a while because his property needs to be repaired then the insurance will cover for that as well. Personal property in these types of homeowners insurance pertains to clothes, furniture, appliances, and pretty much any kinds of personal property that the insured may have.

The HO-3 types of homeowners insurance is the most commonly chosen of all the homeowners insurance. It is like the HO-2 as well, but there are a list of circumstances that the insurance policy will not cover including floods, water seepage, earthquakes and the like. The list of perils in this insurance policy is limited to only 16, and your personal property will only be covered if it gets damaged because of any of those.

The Cash Value types of homeowners insurance, as the name implies, are insurance policies that will give you the cash value of the property that is insured. There is, of course, also a list of perils that should be followed in these kinds of insurance policies. If your property gets damaged because of wear and tear, it will also be covered by these types of homeowners insurance. The main problem about these types of homeowners insurance is depreciation. We all know that land properties can depreciate its value. And if the owner got his property at a certain amount of money, when he needs to claim the cash value of it 20 to 30 years later, that is the same cash value that he is going to get.