Here’s how two general but commonly purchased policies work and what is or isn’t covered. To be sure, you can always add additional coverage for your individual needs.
2 Different Types of Homeowners Insurance Policies
HO-1 Basic Homeowners Insurance
A basic form homeowners policy is just that — basic. It will usually financially safeguard against 10 named perils:
Fire or smoke
Hail and windstorms
Damage from vehicles
Damage from aircraft
Riots and civil commotion
Floods and earthquakes are not covered under this type of policy nor is your personal liability should someone be injured on your property. In addition, items inside the structure ie. your personal belongings aren’t typically covered.
Be advised if you are intending to carry a mortgage on your property, that many mortgage companies do not consider this type of policy to be sufficient coverage for collateralizing a home or other type of property.
HO-2 Broad Form Homeowners Insurance policies
As the name implies, this type of policy is going to offer you coverage on much more than the HO-1 standard policies. Because, as mentioned above, many mortgage lenders do not consider the standard HO-1 type policies to be sufficient coverage, the HO-2 policies are more common. With this type of policy, a homeowner can expect to be covered against all of the things covered in a standard policy, plus these additional named perils.
Weight of ice, snow, or sleet
Freezing of household systems like AC or heating
Sudden and accidental tearing apart, cracking, burning, or bulging of pipes and other household systems
Accidental discharge or overflow of water or steam
Sudden and accidental damage from artificially generated electrical current
These home insurance policies cover not only your home’s structure but your belongings and sometimes even your personal liability as well. However, because an HO-2 policy is a “named peril” policy, any damage caused by events other than those listed on your policy will generally be excluded from coverage.
It is also important to note that HO-1 and HO-2 policies routinely exclude the following perils
6 Things That Can Void Your Home Insurance Policy
After you have purchased home insurance coverage sufficient for your needs, beware of these actions which could void your policy and leave you without coverage.
Being away from your home for an extended period of time, leaving the home vacant
Making extensive home repairs or renovations
Starting or running a home-based business
Conducting illegal activity inside of the home
Fraudulent descriptions or misrepresentations of the property
Making too many claims
Understanding your home insurance needs is exactly what we do here at Yaekel Insurance. Call today at 618-233-0024, for a free, no-obligation quote.