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Choosing your Homeowners Insurance Policy Part 1

Updated: Sep 20, 2020

One of the most important things in life is to purchase an insurance policy for your home and belongings. When purchasing a home, buying a homeowner's policy is the most responsible first step you can take. There are a lot of issues that come up when you are a first-time homeowner that may cause you to need insurance coverage, weather disasters, burglary, fires, floods, etc. There are several different types of home insurance specifically designed for potential risks and types of homes. Read on to learn about the different types of home insurance and tips to follow when deciding on your policy.

HO-1, 2, and 3

One of the most common types of home insurance is known as HO-1. This is basic coverage that protects homeowners from natural disasters and catastrophic claims only. Typically, an areas that is not covered in this type of insurance are floods and earthquakes; this requires an additional policy. An HO-2 otherwise known as broad homeowners insurance covers more than an HO-1 and issues that result from natural disasters like ice, sleet, damage to home pipes, etc. HO-3 insurance is a special form of insurance that will cover additional or attached structures toy our home. These structures can be a pool house, garage, shed, in-law quarters, or deck, etc. Any damage to these structures will be covered by this policy.

Renters’ Insurance

You may think if you do not own a home that you do not have to worry about insurance for where you live. Renters’ insurance, or HO-4,  is essential when renting from a private landlord or even an apartment complex. Most places that you will rent from offer a packet of information and companies that they partner with for renters’ insurance. This will protect you from the loss of personal property on the property you are renting from. This will not cover any damage done to the apartment; damages to the actual apartment or home will be covered by the landlord’s policy.

Let’s Review!

How do you begin to know what potential risks you are taking by purchasing a home? A good first step is analyzing the options above and letting Insuravita help you choose the correct policy. Comparing these types of insurance seems complicated at first. Here is a recap of what we discussed above. You would choose an HO-1 policy only if you do not anticipate needing extensive coverage. This is a basic form of insurance and can sometimes leave out essential areas that need additional coverage. An HO-2 policy goes one step further to cover personal items within your home and specific weather issues mentioned above. You would choose an HO-3 to have more coverage than an HO-1 policy but at a more affordable cost, this is the most common form of home insurance.

The Takeaway

Make sure to go to and get yourself a quote. This will help you to compare your rates and choose the best policy that fits your needs and budget. Look to our next article at that will focus on four other types of home insurance that may apply to you and your family.

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