Home insurance is one of the most important types of insurance you need to buy. Home insurance is your financial protection and peace of mind. But to get the best of your home insurance you should plan other details about it. You want to pick the best coverage for your belongings. Like any other insurance, home insurance comes in many different types and coverage levels. Whether you are buying your first home insurance policy or you want to update your current, knowing different types of home insurance is a key. Before you make the final decision, make sure to pick the best policy for your home protection. Remember, more coverage means higher premiums.
Different types of home insurance
Home insurance policies include the following coverages:
HO-1: A basic home insurance policy with limited coverage
This type of home insurance policy protects your home from a specific list of 11 damages: fire damage and lightning; vehicles; smoke; vandalism; aircraft; theft; windstorms and hail; explosion; riots and civil commotion; glass that is part of the home; and volcanic eruptions. This policy will not cover the unnamed damages in the policy.
HO-2: A basic policy that protects against all 11 perils the HO-1 covers plus others
Besides the perils included in an HO-1 home insurance policy, the HO-2 policy also includes damage from falling objects; water damage from plumbing, heating air-conditioning, and household appliances.
Same as the HO-1, the HO-2 only covers specifically listed perils.
HO-3: An extended home insurance policy
This is the most common policy because it protects against all 16 of the most common perils. But few possible situations are excluded such as earthquake, flood, landslide, and sinkholes). HO-3 is a policy that covers the structure and your belongings to the limits defined in the policy. But, if your possessions are destroyed from the peril that is not defined in the policy, HO-3 will cover the structure but not your belongings. If you decide to buy this type of coverage make sure you know is excluded.

HO-4: Cover the same types of damages as an HO-2 policy
This policy covers the same damages as HO-2 policy but the HO-4 is the best policy for tenants who want to ensure personal items at a rented location.
HO-5: Policy that protects your home from almost every damage
HO-5 is a home insurance policy that covers all 16 damages plus any damage that is not specifically excluded. Because the big coverage this policy will cost you more than others.
HO-6 – For condominium unit-owners
With HO-6 policy insure the items not covered by any policy purchased by the condo association. This policy also covers personal items in the unit.
HO-8: Policy designed for older homes
This policy form is an ideal solution for older homes that have a replacement cost that exceeds the actual cash value of the home. HO-8 is used to ensure architecturally significant structures. Same as HO-1, this policy covers the 11 common damages.

Optional home insurance coverages
Protects your home and belongings from flood-related damages. If you live in the area where floods are common, you must purchase a flood insurance to cover your home and belongings.
- Earthquake insurance
With this type of home insurance, your home is covered in case of an earthquake. If your town is known as a location with frequent earthquakes, make sure to purchase the earthquake insurance immediately after you move in.
- Replacement cost plus
This is an extra level of protection. This is additional coverage you can use when you need to rebuild your home after a total loss.
- Other structures insurance
This type of home insurance covers property that is unattached to your home. If you have any of these structures such as an unattached garage, we suggest you purchase this type of insurance to avoid potential costs if some accident occurs.
- Personal umbrella liability insurance
This type of insurance has additional coverage for bodily injuries. So, personal umbrella liability insurance includes property damage and personal injury.

Pick one of the types of home insurance that is a perfect fit for your home and your needs
With many different types of home insurance, it is easy to pick the perfect fit for your home. Before you definitely decide which one to purchase, make sure to read about insurance terms, definitions and explanations. Make sure to understand every part of your policy. Be aware that terms and availability vary by state to state. In case you need help to file your claim or you want to win your appeal for insurance denial, don’t hesitate to give us a call.