Types of Homeowners Insurance Policies: Which One’s Right for You?

Types of Homeowners Insurance Policies: Which One’s Right for You?

When it comes to homeowners insurance, you should understand the different types of policies available so that you can make an informed decision.

Whether this is the first time you are shopping for a homeowners insurance policy or if you currently have a policy, it is always a good idea to be well educated to make sure you have your home properly and adequately covered. It’s also important to know what your deductible is.

Standardized HO (homeowners) insurance policies include:

HO-A provides extremely limited actual cash value coverage for your home and contents. Only the types of damage specifically listed in the policy are covered. HO-A amended policies provide more extensive coverage than the base HO-A but less coverage than an HO-B.

HO-B provides replacement cost coverage for most types of insurable perils, except for exclusions.

HO-C policies provide the most extensive coverage.

When you shop for homeowners insurance, it is very important that you know what your policy covers. Your policy is designed to protect homeowners from insurable perils. These perils can include fire, theft, hurricanes and several other events. Your individual policy is determined by named perils and exclusions. Policies can differ from homeowner to homeowner. With your agent’s help, you can determine how much coverage you and your family need.