Types of Policies
Homeowners insurance policies vary according to individual needs and requirements. Generally speaking, there are two types of homeowners insurance policy options to choose from – monoline and package policies. A monoline homeowners insurance policy only has one specific type of coverage, such as liability. A package homeowners insurance policy offers several different types of coverage. The package policy may include property and liability insurance together, for example. For most people, it is more cost effective to buy a package policy instead of a monoline homeowners insurance policy. InsuranceUSA.com can help you decide just which homeowners insurance policy is right for you!
There are seven standard types of homeowners insurance policy options to choose from, depending on your personal needs. Each is described briefly below. For more information on these homeowners insurance policy options available, contact insuranceUSA.com.
Homeowner-1 (HO-1): Offered by very few homeowners insurance policy companies, this policy option has very narrow coverage. It usually covers damage from fires, lightning, smoke, wind, hail, burglary, theft, explosion, glass breakage, vehicle damage, riot and civil unrest, as well as civil judgments, medical payments, personal property, and expenses if forced to live away from home for a short period of time.
Homeowner-2 (HO-2): This homeowners insurance policy covers everything listed in HO-1, as well as falling objects, damage from the weight of ice or snow, damage from leaks or freezing in the plumbing system, electrical damage to appliances, and damage caused by a rupture in the water heater.
Homeowner-3 (HO-3): Also called a Special Form Policy, this is the most common type of homeowners insurance policy in use. It covers all physical losses, except for those that are specified in the policy. Exceptions often include floods, earthquakes, war and other disasters, natural and man-made.
Tenant/Cooperative Owner (HO-4): This homeowners insurance policy is for renters or owners of cooperative units. This is used to insure against damage to the tenant’s possessions, and personal liability for physical damage suffered while in the unit.
Homeowner-5 (HO-5): This homeowners insurance policy covers everything listed in HO-3, plus personal possessions against loss, except for specific exclusions listed in the policy.
Condominium Unit Owner (HO-6): This particular homeowners insurance policy offers the same coverage as HO-4, but is used only for condominiums.
Homeowner-8 (HO-8): This homeowners insurance policy option is similar to the HO-1 policy. The difference though is that it provides actual cash value payment instead of replacement cost coverage. This homeowners insurance policy is usually only used in the case of older homes where the property exceeds the market value.
No matter what type of homeowners insurance policy you need, InsuranceUSA.com is ready to help you get all the information you need to make the right choice!