A house is probably the biggest and most important purchase you will ever make; you worked very hard to achieve that dream. It is your responsibility to protect it for your kids and family to enjoy. However, the coverage you have depends on the type of policy you have, below is a list of Homeowner’s insurance policies for your review. EZ Insurance Solutions has a wide variety of insurance carriers that will offer you the best coverage at a reasonable price.
Protecting Your Home
Types of Homeowner’s
Insurance Policies.
HO-1
Basic homeowner’s policy. Covers your house and possessions against 10 different perils. HO-1 policies have been discontinued in most states.
HO-3
Special form homeowner’s policy. Covers the structure for all perils except those specifically excluded by the policy. Contents are covered against perils named in the policy.
HO-5
Premier homeowners policy, generally offered to newer, high-end homes that are well-maintained. Much like the HO-3 policy but contents are covered against all perils except those specifically excluded.
HO-8
Policy for older homes. Covers the same perils as HO-2 but pays only for repair costs or actual cash value, since replacement cost could make the policy costly. Well-suited for older homes whose market value is considerably less than the cost to rebuild them.
HO-2
Broad homeowner’s policy. Covers house and contents against 16 perils, which are named in the policy.
HO-4
Renter’s insurance. Covers contents for 16 named perils and includes liability coverage. It does not insure the dwelling itself. Also includes liability coverage for the renter.
HO-6
Insurance for owners of Co-Ops or Condominiums. Provides personal property coverage, liability coverage as well as specific coverage of improvements to the owner’s unit. The Homeowner’s Association insurance normally covers most of the actual structure.
One of the most common questions people ask when purchasing homeowner’s insurance is… What does my policy cover? Below you will find examples of the types of coverages usually listed on your homeowner’s insurance policy.
Type of Coverage and Description
Coverage A:
Dwelling / Damage to House
Covers damage to the house. The face amount of the policy (for example $100,000) is the most you will receive if your house is totally destroyed.
Coverage B:
Other Structures
Covers damage to other structures or buildings, such as a detached garage, work shed, or fencing.
Coverage C:
Personal Property
Covers damage to, or loss of personal property. Personal property includes household contents and other personal belongings used, owned or worn by you and your family.
Coverage D:
Additional Living Expense
Covers additional living expenses when incurred. This means that the policy covers the necessary living expenses up to the stated limit, incurred by the insured to continue, as nearly as possible, the normal standard of living when the house cannot be occupied due to a covered loss.
Coverage E:
Comprehensive Personal Liability
Covers personal liability. This coverage protects you against claims arising from accidents to others on property that you own or rent. With a few exceptions, such as auto or boating accidents, it is an all-purpose liability policy that follows you wherever you go.
Coverage F:
Medical Expense
Covers medical expenses. Coverage is limited to an amount per person and per accident for injuries occurring on your premises to persons other than an insured, or elsewhere, if caused by you, a member of your family, or your pets. An important feature of this coverage is that payment is made regardless of legal liability.
Flood Insurance
It is important to know that homeowner’s, renter’s, landlords’ insurance does not cover flood damage. If you believe your property is in a flood zone you should consult with your local insurance agent and ask if flood insurance is something you must consider.
When water damages your house and or your personal belongings it is also important to know if you are dealing with a water damage claim or a flood claim. The Federal Emergency Management Agency (FEMA) describes Flood as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder’s property) from one of the following:
- Overflow of inland or tidal waters
- Unusual and rapid accumulation or runoff of surface waters from any source
- Mudflow
- Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above
In other words, if the water comes from a natural source (heavy rain, river, creek, sea, etc.) and two or more properties are involved (yours and your neighbors for example) most likely you are dealing with a flood insurance claim.
For more information on flood insurance please contact EZ Insurance Solutions or click on the below links:
