Homeowner's Insurance

garden homeWhen it comes to homeowners insurance things get a little more complex than just auto insurance. There’s lots of things to take into consideration when choosing homeowners insurance from deductibles to coverage amounts it is certainly not an easy process. Homeowners insurance is also commonly referred to as HOI or hazard insurance.

Typical homeowners insurance policies include coverage for private homes. This type of property insurance is usually required on homes that have a mortgage and may be required by your state’s department of insurance. Always check your local laws and regulations when making decisions on insurance coverage or if you have questions regarding insurance coverage.

Typically, in the United States, most homeowners borrow money in the form of a mortgage loan which typically requires a homeowners insurance policy. This policy is in place to protect the bank if the property is destroyed or losses are sustained. Homeowners insurance can protect your assets as well in the event of a loss.

There are 5 typical classes of coverage, based on standards set by the Insurance Services Office.

  • Coverage A – Dwelling: This type of coverage covers the value of the dwelling only – which does not include the land.
  • Coverage B – Other Structures: This coverage includes other types of structures on the property including sheds or other type of structures on the land.
  • Coverage C – Personal Property: This coverage includes coverage of your personal property, or contents, of your home in the event of a loss.
  • Coverage D – Loss of Use: This type of coverage includes coverage of additional living expenses in the event of a loss.
  • Additional Coverage – There are other forms of coverage available such as cleanup or removal of debris in the event of a loss.

These are just the 5 typical classes of coverage. Before making a decision on coverage amounts you should always discuss with a trusted insurance agent or financial professional. They can help you choose the best fit for your situation.

In addition to the types of coverage there are types of standard policies, as defined by the Insurance Services Office.

Types of Policies:

  • HO1 – Basic Form Homeowner Policy
  • HO2 – Broad Form Homeowner Policy
  • HO3 – Special Form Homeowner Policy
  • HO4 – Renter’s Insurance
  • HO5 – Premier Homeowner Policy
  • HO6 – Condominium Policy
  • HO8 – Older Houses

If you’re interested in learning more about the different insurance policies check with the Insurance Services Office. They set and house these standard forms of homeowners coverage.

It’s certainly important to maintain the appropriate form of homeowners coverage. Without the proper coverage you may find yourself suffering additional financial losses as a result of a loss. Having the appropriate coverage will not only give you peace of mind but will protect you and your family.

Always check with your state insurance office before choosing coverage. Your state insurance office may provide valuable information on choosing coverage including information like average rates, typical coverage, required coverage and more.