Homeowner's Insurance - Part 2

There are seven basic types of homeowner's insurance which is HO1, HO2, HO3, HO4, HO5, HO6, HO7.

HO1. This is basic and inexpensive insurance with limited coverage, naming the perils it will cover, such as fire or lightening, windstorms of hail, smoke damage, explosion, riot or civil commotion, vehicles, aircraft, theft, vandalism or malicious mischief, damage by glass that is a part of a building, and damage due to a volcanic eruption, I doubt there would be mush left to repair.

HO2. This expands HO1 and adds things such as weight of show and ice, electrical damage due to surges and appliance malfunctioning, and heating or air conditioning damage. It is still limiting.

HO3. This is the most widely purchased type of homeowners insurance. If covers all risks and perils of HO! and HO2 on buildings and specified risks on personal property. There are several major exclusions: flood, earthquake, war, and nuclear accidents.

HO4. This policy is for renters and covers risks to personal property only, not the physical property.

HO5. Provides even broader coverage than HO3 and is much more expressive and difficult to find.

HO6. Provides coverage for condominium owners only. It covers personal property and loss of use and the inside structures of the condominium. The building structure is covered by insurance that the condominium association must purchase.

HO7. This is for older homes that may be in the historic district of a city.

 

Now look at your net worth statement. Do you have antiques, a stamp collection, or very good jewelry? Do you know what they are with? Have you had the appraised? You want to be sure that everything you own is properly insured. (Your basic HO3 will limit the dollar amount paid to you if there is a loss.) These articles need special coverage in the form of a floater/rifer/endorsement that is attached to your homeowner policy. It's not very expensive to add to the policy, And it's a good idea, no matter how anal it sounds, to keep the receipts for items you have bought in a fireproof place along with a home video of your home's contents.