Are there different types of homeowners insurance policies?
Yes. A person who owns his or her home would have a
different policy from someone who rents. Policies also
differ on the amount of insurance coverage provided.
The different types of homeowners policies are fairly
standard throughout the country. However, individual states
and companies may offer policies that are slightly different
or go by other names such as “standard” or “deluxe”. You should consult with a
Behnke & Associates professional insurance consultant to determine which
coverages best suit your needs.
If you own your home
If you own the home you live in, you have several policies
to choose from. The most popular policy is the HO-3, which
provides the broadest coverage. Owners of multi-family homes
generally purchase an HO-3 with an endorsement to cover the
risks associated with having renters live in their homes.
- HO-1: Limited
coverage policy
This “bare bones” policy covers you against the first 10
disasters. It's no longer available in most states.
- HO-2: Basic
policy
It provides protection against all 16 disasters. There
is a version of HO-2 designed for mobile homes.
- HO-3: The most
popular policy
This “special” policy protects your home from all perils
except those specifically excluded.
- HO-8: Older home
Designed for older homes, this policy usually reimburses
you for damage on an actual cash value basis which means
replacement cost less depreciation. Full replacement
cost policies may not be available for some older homes.
If you rent your home
- HO4-Renter
Created specifically for those who rent the home they
live in, this policy protects your possessions and any
parts of the apartment that you own, such as new kitchen
cabinets you install, against all 16 disasters.
If you own a co-op or a condo
- H0-6:
condo/co-op A policy for those who own a condo
or co-op, it provides coverage for your belongings and
the structural parts of the building that you own. It
protects you against all 16 disasters.
