Types Of Home Insurance Coverage

Types of home insurance coverage

There are many different types of policies and options when your shopping for home insurance. This guide helps you understand the differences between each of them.

Earthquake insurance

Earthquake insurance is a stand-alone policy that supplements standard homeowners insurance to cover damages caused by movement of the earth beneath the building. The types of movement covered by an earthquake policy can vary between insurance companies, and from state to state. Some policies cover damage due to natural and man-caused quakes, and movements such as landslides, sinkholes and fracking-related tremors, while others strictly cover damages caused by natural seismic events.

Flood insurance

Flood insurance is a type of homeowners policy that provides protection specifically for flood-related damages to a home and its contents. These policies must be purchased in addition to standard homeowners coverage, and they carry a separate deductible. They're usually available from insurers under contract with the Federal Emergency Management Agency, as well as homeowner insurance companies and agents that offer National Flood Insurance Program policies.

HO-5: comprehensive form homeowners insurance

An HO-5 insurance policy is one of the best ways to protect your home and property from damage. A comprehensive home policy will insure you against all risks, except those that are specifically listed as an exclusion in the policy. However, some risk factors are not covered by an HO-5 policy, including natural disasters such as earthquakes or floods.

HO-3: special form homeowners insurance

As a homeowner, it's important to have an understanding of the types of insurance policies that are available so you can adequately protect your home and belongings against potential harm. An HO-3 special form home insurance policy is one option you may want to consider.

HO-8: insurance for older homes

HO-8 insurance policies are modified versions of standard homeowner policies that are specifically designed to provide coverage for older homes. These policies include similar types of coverage as a standard homeowners policy, such as an HO-3, but have details adapted to structures more than 40 years old.

HO-2: broad form homeowners insurance

HO-2 broad form homeowners insurance is one of several types of coverage you are likely to find available to you as you shop for coverage. This type of home insurance is slightly different from other forms of home insurance. When shopping for coverage, your agent may mention this type of coverage to you, though other forms may be better fitting to some property owners.

HO-1: basic form homeowners insurance

When purchasing home insurance, you may notice specific terms within the policy. For example, HO-1 is a type of homeowner's insurance. This term describes the most likely types of perils, or losses, the policy will cover. When selecting home insurance, you'll want to read through the policy to ensure you know what to expect and what limitations exist.

HO-6: condo insurance

HO-6 insurance is a type of homeowners policy that provides coverage for individual condo units. An HO-6 policy, also commonly called condo insurance, provides what's often referred to as "walls-in" coverage, which refers to the individually owned portion of the structure that's within the unit's walls, ceilings and floors. HO-6 policies are designed to supplement the master policy purchased by the building's homeowners association, which is paid for collectively through HOA fees and covers the structure itself, exterior elements, common areas, and shared amenities such as a swimming pool or tennis court.

HO-4: tenant form homeowners insurance

An HO-4 tenant's form homeowners policy is insurance that covers a renter's personal property and liability for injuries incurred by guests on the property. This type of policy is considered ideal for people who are renting a house or apartment.

HO-7: mobile home insurance

An HO-7 mobile home form homeowners policy is one of the eight basic types of home insurance coverage. This type of policy is specifically designed to cover mobile and manufactured homes. Because standard homeowners policies don't cover these homes, an HO-7 is the only type of policy available.

Medical payments coverage

Also called Coverage F, medical payments coverage is an optional addition to a home insurance plan. This type of coverage provides a fixed amount for medical services incurred as a result of an injury on a homeowner's property and the coverage is not contingent upon determining the at-fault party. This means that payment of funds can typically occur quickly when compared to awaiting the results of an insurance investigation.

Ordinance coverage?

Ordinance Insurance - interchangeably known as law coverage - provides financial assistance in the event that your home needs to be repaired to meet state and local ordinances, codes and laws. Generally, there is some level of this coverage included with your homeowners' insurance policy. However, the amount of coverage may not be enough for your particular building or area. Understanding what this form of insurance covers can help you determine how much coverage you need.

Other structures insurance

Does your property contain a gazebo, fence, shed or detached garage? If so, chances are they would cost a significant amount of money to repair or replace. Include these items on your insurance to ensure that you don't face a huge bill if they are damaged or destroyed in a covered event.

Personal umbrella liability insurance

Personal umbrella liability insurance covers damage to the property of other people that is in the possession of the insured individual. These losses are covered anywhere in the world, but it should be noted that only lawsuits that are filed in the United States are covered. Overseas lawsuits won't be covered unless specified by the provider. Being protected from lawsuits can be invaluable if you're a high value individual.

Replacement cost plus insurance

Replacement cost plus is an optional homeowners insurance policy endorsement that increases coverage on the insured property by a set percentage of the policy's stated limit. Adding this endorsement can help long term owners offset depreciation on their home by providing additional funds to rebuild after a total loss.

Water backup of sewer insurance

Water backups related to sewer lines, plumbing drains, and sump pump failures aren't covered under standard homeowner, condo, and renter insurance policies. To provide protection against damages caused by this common issue, a renter or property owner must have an optional water backup endorsement added to their insurance policy. Fortunately, this is a type of extra coverage that's offered by most insurance companies.

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