Low Home Insurance

How to Choose the Best Plan for Your Home

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 options that most insurers offer, some offerings provide better protection 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 free comparison tool. If you're having trouble making your decision, go over this outline of the basic types of policies and see which one best fits your needs.

  • HO-1: This is your most basic form of protection, covering your dwelling 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, this type of plan provides much more protection than the former. It covers dangers such as windstorms, theft, falling objects, building collapses, and more.
  • HO-3: Sometimes called special coverage, this is probably the most popular form of insurance among residents. 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 dwelling, rather it protects the contents inside it and is often used for renters. It the same perils as the HO-2 policy. Most forms also provide liability protection for the policyholder.
  • HO-8: Called older home coverage, this the same perils from HO-2, but typically only pays for repair costs or actual cash value. Since older dwellings have depreciated in value and use inferior building materials, replacement coverage is usually not available here.