Types of Home Insurance

When you're searching for your home insurance policy, you'll inevitably have to make a decision about which type is best for you. There are several basic types that most insurers offer, some types provide better coverage than others, but they also carry higher premiums. It can be a difficult decision for anyone to make, especially knowing that the wrong one could potentially haunt you for years to come. Fortunately, no matter which type you choose, you can trust you'll be getting the best deal with our low rate home insurance quote service. If you're having trouble making your decision, go over this outline of the basic types of home insurance policies and see which one best fits your needs.

• HO-1: This is your most basic form of house insurance, covering your house and possessions only against the major perils, such as fire or lightning damage. While it frequently has the lowest rates of all the types of insurance, HO-1 coverage is no longer available in most states.
• HO-2: Often referred to as broad coverage, an HO-2 policy provides much more coverage than HO-1. It covers dangers such as windstorms, theft, falling objects, building collapses, and more.
• HO-3: HO-3, sometimes called special coverage, is probably the most popular form of insurance among home owners. It covers all perils except for those that are named in the policy. The types of perils typically not covered include earthquakes, floods, mudslides, and other fairly uncommon events.
• HO-4: This form of insurance does not actually provide coverage for the home, rather it protects the contents inside it and is often used for renters. HO-4 covers the same perils as the HO-2 policy. Most forms also provide liability coverage for the home owner.
• HO-8: Called older home coverage, HO-8 covers the same perils from HO-2, but typically only pays for repair costs or actual cash value. Since older homes have depreciated in value and use inferior building materials, replacement coverage is usually not available here.