There are seven general types of home insurance policies under the industry standard Homeowners 2000 Program, ranging from HO-1 to HO-8 (there is no HO-7) as of 2014. Perils covered under HO-1 policies are very narrow, and they are not sold in all states. HO-2, HO-3 and HO-5 are the types of policies held by most owners of modern houses, with HO-2 providing the most narrow coverage and HO-5 providing the most broad coverage. HO-4 policies are for renters. HO-8 policies are designed to meet the needs of owners of older homes for which the price to replace a building is much greater than its market value. HO-6 policies are designed for owners of condominiums.
HO-2 policies cover 16 distinct perils ranging from fire and lightning to vandalism. HO-3 policies provide protection for all perils to the house except those outlined in the policy and exclude perils to personal property, for which coverage is for a list of named perils only. Perils to a house that are excluded in HO-3 policies include:
HO-5 policies cover all damages to both the house and personal property subject to a list of exclusions outlined in the policy.
Other events for which homeowners may not be sure if they are covered or not include:
Every situation is different, and insurance agents can answer questions about what is and is not covered. Homeowners who have any doubts should ask their insurance agents. While many perils are not covered by standard policies, there are many instances where riders or additional policies may be purchased to firm up specific coverage.
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