The coverage you have depends upon the type of policy you have. Unlike auto insurance, where the policies are pretty much the same, homeowners policies can be quite different, depending on the "form" number. The most common types of homeowner policies are:
- HO1 Basic or Standard policy
- HO2 Broad form
- HO3 Special (also called Deluxe, All Risk)
- HO4 Renters policy
- HO5 Enhanced Special Coverage
- HO6 Condo policy
- HO8 Older Home Policy
All homeowner policies are "package" policies. You get a group of coverages packaged into your policy for one overall premium.
They include coverage on:
- your building,
- your contents (furniture, clothing, etc.)
- and liability insurance in case you are sued, under the same policy.
The property coverage is shown under Section 1.
The liability coverage is described under Section 2.
There is no better way to understand your homeowner policy than to read it! We suggest you pull out your policy and find the parts to your policy that correspond to the following explanations:
A typical policy consists of three things:
- The Declarations Page - that declares who, what and how much you are insuring, along with the date your coverage starts and the premium.
- The Policy Booklet - printed pages that contain the details of coverages and exclusions.
- Endorsements - separate pages, usually with endorsement numbers, that change (or endorse) specific parts of the policy.
Sometimes you are only given the original policy once in the beginning, then on renewal, to cut down expenses, you are just sent the dec. page (declaration page) with the bill. It's a good idea to save the original policies should you ever need to refer to them.
Explanation of Homeowner Policy Types
The HO1 policy is very limited in coverage and is not being sold by most companies.
The HO2 policy covers the basic perils of fire, lightning, explosion, smoke, hail, aircraft, riot, glass breakage, theft and damage caused by vehicles. It also adds additional coverage to broaden your policy. Those perils include damage caused by rupture of your water or heating pipes, falling objects (such as trees), collapse of the building, limit electrical damage to appliances and others.
The HO3 policy is, by far, the most commonly sold policy. It covers everything the HO2 policy covers and more. Instead of listing the perils that are covered these policies cover all damage to the building except what is excluded. The usual exclusions are: wear and tear, termites, rotting, collapse of septic tank, flood, war, earthquake and a few others. Some HO3 policies are referred to as "Deluxe" , "Special" , "All Risk" policies depending upon the company.
An Important Explanation of Contents/Personal Property Coverage
Most policies cover your contents or belongings only for the perils named in an HO2 policy so wear and tear and normal breakage is not covered for your furniture and personal belongings. Be careful! Your homeowner policy limits coverage on some items.
We are here to help you navigate the complexities of your policy, ensuring that you have the proper coverage for your unique circumstances.
To keep the cost of insurance down your policy probably has limits on certain items. Typical limits are:
- Cash - $200
- Jewelry - $1,000
- Firearms - $2,500
- Silverware - $2,500
Check your policy carefully. If you see you don't have enough coverage, find out how much it would cost to increase those limits or to buy special coverage.
In addition to special coverage for jewelry, silverware and furs, you can purchase specific coverage for such possessions as stamp or coin collections, fine arts, camera equipment, collectibles, watercraft and musical instruments, just to name a few.
Disclaimer: This information is not an offer to sell insurance. Insurance coverage cannot be bound or changed via submission of this online form/application, e-mail, voice mail or facsimile. No binder, insurance policy, change, addition, and/or deletion to insurance coverage goes into effect unless and until confirmed directly with a licensed agent. Note any proposal of insurance we may present to you will be based upon the values developed and exposures to loss disclosed to us on this online form/application and/or in communications with us. All coverages are subject to the terms, conditions and exclusions of the actual policy issued. Not all policies or coverages are available in every state. You also agree to release us from any liability if this information is accidentally viewed by unauthorized persons. We will only use this information for insurance quoting purposes and not distribute to other parties.