Types of homeowners insurance

Homeowners insurance is a great way to secure one of your most valuable assets – your house. By purchasing homeowners insurance you protect your family financially from a list of possible perils that can damage and even destroy your house. Even if it's not mandatory by law having your house insured is one of those common sense decisions that you should definitely think of if you really want to hedge your risks. However, it often makes a difference what type of homeowners insurance policy you purchase as there are 8 types of them available. In order to eliminate possible confusion here is a short description of all policy types:


The most basic type of home insurance. It only covers things that are specifically indicated in the policy and is often used to cover particular items or objects such as valuables, collectibles or works of art.


As you would guess this type of policy is an advanced form of HO-1 with a broader coverage that applies to a particular part of the house and protects against a specific peril.


Also called "basic policy type" this is the most popular kind of policy you can buy from an insurer. It covers both the house and its contents against a set of the most common perils. It also includes liability coverage for situations when someone gets hurt on your property.


This type of homeowners insurance policy is aimed at renters as it covers only the contents of the house and liability. The house itself should be insured by the actual homeowner.


This policy type is quite similar to HO-3 in terms of functioning but it delivers a much broader set of situations when the coverage applies. There are usually more perils included too.


Is aimed at condo owners as it provides specific types of coverage that are best suited for condominium dwellers.


This type of homeowners insurance is designed for mobile home owners, which is a rather popular type of property in the US and features certain peculiarities as compared to ordinary houses.


This policy type is designed specifically for owners of older houses. Quite often such structures have specific historic value and require certain provisions that aren't achieved through a typical homeowners insurance policy.

Keep in mind that besides the policy itself you may need to purchase a rider for a specific peril or item that isn't covered by the policy. So make sure to analyze your needs and choose the right policy type that will cover them perfectly.

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