Choosing the Right Home Insurance

Having a home is a great responsibility. It’s up to a homeowner to conduct regular upgrades both inside the house and in the backyard. Sometimes those improvements can be costly and take a lot of time to finish. Still, life can bring unpredictable issues to your doorstep, and in a blink of an eye, your home can be damaged. Have you thought about getting home insurance among all the other improvements?

If you look at the home insurance facts, you’ll realize it’s not a luxury but a necessity. Home insurance can make or break you when it comes to making mortgage decisions, not to mention the risk of storms or other damage.

Don’t worry, we’ve got you covered.

How to Choose the Right Policy

Choosing the right policy can be a headache. Luckily, there are eight types of home insurance policies. They can depend on where you live, what kind of home you have, and whether or not you’re the owner or tenant.

HO-1: This is the most basic, affordable coverage. It protects from damage caused by fire, hail, vandalism, theft, and other common dangers. Most HO-1 policies also protect from volcanic eruptions, lightning, and windstorms.

HO-2: This insurance covers the same issues as HO-1 with additional protection from frozen pipes, water heaters, power surges, and steam damage from appliances. You’re eligible for insurance only if the damage is due to the event stated in the policy.

HO-3: This is the most recommended insurance policy. It covers the main building plus all other buildings on the property. You’ll be covered for all types of damage except those that aren’t listed.

HO-4: This policy is more for renters than homeowners. As such, it covers the belongings, not the property per se. Still, if the tenant causes damage to the property while living in it, the policy can cover the repairs.

HO-5: The most comprehensive policy for homeowners, it covers all that HO-3 does, plus belongings. HO-5 comes a little costly, but the higher the premium, the more extensive the coverage is.

HO-6: This option provides insurance for condo owners. These policies work like the standard ones, only they don’t cover the complete building, just the owner’s unit.

HO-7: Mobile-home owners might opt for this policy. HO-7 offers the same coverage as HO-3 with the possibility of included liability. It can’t be applied to RVs, only mobile or manufactured homes.

HO-8: This is the insurance that protects older homes that don’t qualify for HO-3.

Additional Options

In case you’re wondering if there’s a way to protect your fence or shed, there are more options to choose from. To name a few:

Other structure coverage

Liability

Personal property

Dwelling coverage

Summary

Your real estate is your most valuable physical possession. As such, you must think above and beyond what can cause damage to your home and what you can do to keep it secured. Keep in mind, it’s best to consider multiple insurance policies, compare prices, and talk to as many experts as you can. That way, you’ll be able to protect your real estate in the best manner possible with an insurance policy that best fits your needs.