Owning a home is a dream that every American cherishes. Buying a home is one of the biggest investments made by an individual in his entire lifetime. One needs to spend thousands of dollars towards buying a real estate property. Several emotions, attachments and feelings are associated with a home.
Losing all this investment due to natural disasters or accidents can be disheartening and heart-wrenching. The best way to address this problem is to buy a good home insurance policy. Also known as hazard insurance or homeowner’s insurance, a home insurance policy provides financial protection to the house and all the valuables present inside the home.
There are several companies in the market offering different types of home insurance policies. Choosing the right insurance policy from a good and reliable company is vital. There are different factors that need to be considered while choosing an insurance policy. Some of these include the insurance coverage amount required, premium amount, claims history of the company and the exclusions involved in the policy.
In the United States, there are eight different types of insurance policies available to customers depending on their requirements and needs.
1. HO-1: This insurance policy is used to cover individual properties like valuable sculptures and remarkable paintings.
2. HO-2: Also known as peril policy, HO-2 provides insurance coverage to only a specific portion inside the house against natural calamities including hurricanes, earthquakes and fire.
3. HO-3: This is the most commonly preferred home insurance policy providing coverage on the entire house including all the valuables and other assets present inside.
4. HO-4: Also known as renters insurance, this policy provides insurance coverage to homeowners who rent out their house. In this also, the entire house along with the assets inside can be insured.
5. HO-5: This policy is exactly similar to HO-3. However, the numbers of dangers covered under this policy are more than those in HO-3. Insurance premium is also high in this policy.
6. HO-6: This insurance policy is ideal for condo owners.
7. HO-7: Mobile homeowners can avail insurance coverage on their homes under this policy.
8. HO-8: This insurance policy is good for old homes.