Know which homeowners insurance policy is best for you.
When it comes to finding a good homeowners insurance company, we get confused because there are so many policies. Those who don’t buy life insurance or don’t know how to compare car insurance can be in trouble. This is because insurance guarantees safety and financial freedom when you retire and when an accident occurs.
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On the other hand, there are some people who don’t mind getting insurance quotes because they are well informed. They know what it takes to secure the future of their family members. Thus, they keep looking for the best homeowners insurance policies. If you are one of them, you must be aware of the following types.
1. HO-1 — Basic Form
2. HO-2 — Broad Form
3. HO-3 — Special Form
4. HO-4 — Contents Broad Form
5. HO-5 — Comprehensive Form
6. HO-6 — Unit-Owners Form
7. HO-7 — Mobile Home Form
8. HO-8 — Modified Coverage Form
HO-1 — Basic Form
It is the most basic form of progressive homeowners insurance. When you buy this insurance policy, you will be ensured that the entire house has been covered at the actual price or cash value. You can get coverage for personal belongings.
HO-2 — Broad Form
Before you get a homeowners insurance quote, you should be aware of this type of insurance policy. Companies providing it cover a wide range of perils. Most importantly, these policies cover the house at the replacement price or cost. It means you can get coverage for any personal property at its original cash value.
HO-3 — Special Form
It is one of the most common types of home insurance. When you get this policy, your house is covered at the replacement price and other personal properties are covered up at the actual cash value. Some insurance companies add an endorsement to the policy.
HO-4 — Contents Broad Form
It is also called renter’s insurance. This type of homeowners insurance policy is suitable for those who rent or lease their apartments, condos or homes. It covers the renter’s personal properties at the replacement cost. The living expenses are also covered if your house is not fit to live in because of some damages.
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HO-5 — Comprehensive Form
It is believed to provide the highest level of coverage for a single-family house. This policy has a lot of similarities to the HO-3 — Special Form. Plus, it gives extra protection benefits.
HO-6 — Unit-Owners Form
It is often regarded as condo insurance and unit-owner insurance. This policy has been designed for those who are living in a condominium or co-op. It typically covers the whole condo building and some shared areas.
HO-7 — Mobile Home Form
It provides the same facilities as are provided in the HO-3 policy but everything is related to a mobile home. It is suitable for a single-family house and covers structures like double-and-single-wide houses, sectional houses, trailers, and park model houses.
HO-8 — Modified Coverage Form
This homeowners insurance policy is meant for houses that don’t typically meet the standards of an insurer. These are the houses that have been damaged or are at the risk of getting destroyed. The policy has a higher value than the actual cash value of the house.
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