homeowners insurance landlord
HO 1? HO 2? HO 3? Is this a training course Santa Claus has gone wrong? No, it's a quick look at the different levels of home insurance are going to have to choose. Depending on which company you are working with (and his penchant for tagging things with letters and numbers instead of words) a little knowledge of primary different levels of coverage before signing on the dotted line that will put you in a great position to negotiate the best coverage at the lowest premium possible.
HO1: This is the approximate equivalent of a basic responsibility for your car policy that protects your home from the basics: fire, smoke, wind, hail, vandalism. Basically, by purchasing a policy of HO1 you are buying the bare minimum in home insurance. Not all states offer HO1 policy, however, because of its very limited coverage. Your insurance agent probably will encourage you to invest in a wider coverage policy.
HO2: The HO2 policy covers all HO1 policy covered damages of more than six other dangers (to your insurance agent will be happy to explain to you), including breaks in the pipes and household appliances, falling objects and damage caused by ice and snow during the winter. If you live in the north, where winters are usually hard, HO2 policy will be a necessity.
HO3: This is a comprehensive home insurance policy that protects you from almost everything. These policies usually exclude damage caused by floods and earthquakes, but is most commonly acquired through the U.S. If you live in a high risk area like California or the Gulf of Mexico, HO3 policy may be sufficient to cover needs.
HO4: Also known as renters insurance, an insurance policy covering the property HO4 tenant's personal when they are living in a rental property. Most owners have their buildings insured, but this does not cover damage to the tenant of possessions in the event of theft, fire, water leakage or any other disaster that might come.
HO5: A policy HO5 closely resembles HO3 policy, however, a HO5 policy allows the owner to have a policy of all hazards in the contents of your home and not just the structure. This protects the contents of your house from the unpredictable and deeply secures your financial future, regardless of what else might pop up along the road.
Ho6: This is a policy of unit owners, known as condo insurance intended for owners of condominiums that includes full coverage of part of both the building owner's property of the policy and the contents of your personal coverage, extending the gap between the neighborhood and a blanket or building policy and the real value of personal property from the owner.
Some insurers offer additional levels of coverage based on your personal needs, but knowing that these six will prepare you to make the best choice when it comes time to sign on the dotted line for their insurance policy for housing.
About the Author:
Anthony M. Peck is the Senior Developer, Software Project Manager, and Director of Business Development for QuoteScout.com, a company specializing in helping consumers easily compare local and national insurance quotes. For more information, visit
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Article Source: ArticlesBase.com – A Crash Course in the Levels of Homeowners Insurance
