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HO 1? HO 2? HO 3? Is this a Santa Claus training gone wrong? No, it's a look at the different levels of homeowners insurance you'll have to choose. Depending on which carrier you work with (and their penchant for labeling things with letters and numbers rather than words) a little elementary knowledge of different levels of coverage before signing on the dotted line you put in an excellent position to negotiate better coverage to the lowest premium possible.
HO1: This is the equivalent of a basic liability policy that protects your car your home against the basic principles of fire, smoke, wind, hail, vandalism. Basically, buying a policy HO1 you buy the bare minimum insurance. Not every state has a policy HO1, however, because of its extremely limited scope. Your insurance agent will probably encourage you to invest in a more extensive coverage.
HO2: The HO2 policy covers all covered in the policy HO1 more damage to six other risks (such as your insurance agent will be pleased to state for you), including breaks in plumbing and household appliances, falling objects and damage by ice and snow during the winter. If you live in the north, where winters tend to be difficult policy HO2 will be a necessity.
HO3: There is a large owners insurance policy that protects you from almost everything. Such policies generally exclude damage due to floods and earthquakes, but is most commonly purchased through the U.S. If you do not live in a high risk area, such as California or Gulf of Mexico, a policy HO3 May be sufficient for your insurance needs.
HO4: also known as tenant insurance, HO4 an insurance covers personal property of the tenant when they live in a rental property. Most owners have insured their buildings, but this does not cover damages tenant possessions in case of theft, fire, broken water pipe or any other disaster that could accompany me.
HO5: A policy HO5 closely resembles the HO3 policy, however, a HO5 policy allows the owner to have a political perils on the contents their home rather than just the structure. This protects the contents of their home in the unpredictable and deeply secure their financial future, regardless else may occur in transit.
HO6: This is a unit owners policy, known as an insurance condominium for owners of condos including full coverage for both the part of the building belonging to the owner of the policies and content of their personal scope, and it spans the gap between the coverage area and / or building policy and the actual value of property owner's personal.
Some insurers offer additional levels of coverage to suit your personal needs, but knowing these six, you prepare to make the best choices when it comes time to sign on the dotted line for your homeowners insurance policy.
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
QuoteScout.com
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Article Source: ArticlesBase.com – A Crash Course in the Levels of Homeowners Insurance
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