Home Owners Insurance
Homeowners Insurance Cash
Home Owner’s Insurance Part 1
“That’s not covered,” are some of the most devastating words to hear after a natural disaster or a home burglary. If your insurance policy is inadequate, you could hear those words when you need help the most.
On the surface, purchasing homeowner’s insurance seems easy enough; get enough coverage to take care of property should it be lost or stolen. But what about rebuilding damaged portions of the house or protecting yourself from liability if someone is hurt while on your property?
Perhaps when you bought the policy, everything the agent told you seemed obvious: if a tree falls on the house, the insurance will pay for it minus the deductable. If the mailman slips on the sidewalk, it is covered. Things aren’t always so black and white however. What if the tree was felled by ice? Some policies will not cover the damage.
Know Your Home Owner’s Insurance Numbers
The original HO-1 insurance only covered 11 specific causes such as fire, lightening, theft, vandalism volcanic eruption and riot. Because this is such limited in coverage, this policy is being phased out.
The next step is the HO-2 policy which covers against 17 named perils. Snow and ice damage and burst pipes and water damage from freezing plumbing are two of the additional items covered. Because of the extra coverage, the price for this policy is more expensive, but it is well worth it if you need to use the insurance.
The big change in coverage comes with HO-3. This policy is all-inclusive except for specific, named perils. Floods are not typically included in this policy however you can usually buy additional flood insurance.
Be sure to read your policy thoroughly because all of the limits and restrictions of coverage will be stated. The cost for this policy is higher than an HO-1 plan, but you are more likely to be covered if something terrible happens.
HO-4 and HO-6 cover only property and not the structure itself. This type of policy is designed for renters. Most of these policies also have some liability coverage.
If your home has historical significance, is located in a flood zone or has any other special considerations, talk to a local, independent insurance agent to get quotes on appropriate coverage. They will be able to answer your specific questions and set you up with the best policy for you and your home. And always read through your policy carefully to acquaint yourself with what it entails.