What are your different home insurance options?
When it comes time to select homeowners insurance in Astoria, New York, many people are unaware that there are different coverage options. Many homeowners assume that there is just one universal policy option. However, this simply isn’t the case. Here is a brief overview of the eight different types of home insurance.
HO1: Basic Form
This is the simplest form of home insurance and only provides dwelling coverage for the following perils:
- Fire and/or smoke
- Hail and/or windstorms
- Damage from vehicles
- Damage from aircraft
- Riots and civil commotion
- Volcanic eruption
HO2: Broad Form
This type of home insurance offers both dwelling and personal property coverage. These policies cover the perils listed under HO1 coverage as well as the following:
- Falling objects
- Weight of ice, snow, or sleet
- Freezing of household systems, including HVAC systems
- Sudden and accidental damage to pipes and other household systems
- Accidental discharge or overflow of water or steam
- Sudden and accidental damage from artificially generated electrical current
HO3: Special Form
These are the most common types of home insurance policies. HO3 policies offer dwelling, personal property, other structures, liability, and loss of use coverage. HO1 and HO2 policies are “named peril” policies, which means that they only offer coverage for the specific risks listed on the policy. In contrast, HO3 forms are “open peril” policies, which means that they cover all perils except for those specifically excluded in the policy. Commonly excluded perils include the following:
- Nuclear accidents
- Mold and fungus
- Pest damage
- General wear and tear
HO4: Tenant’s Form
Also known as renter’s insurance, HO4 policies offer personal property, liability, and sometimes loss of use coverage. Because the policyholder does not own the physical space they are living in, these policies do not offer dwelling coverage. HO4 policies typically cover the same perils as HO2 policies.
HO5: Comprehensive Form
HO5 policies offer the most comprehensive home insurance coverage. The main difference between HO3 and HO5 policies is that HO3 policies are “actual cash value” policies, while HO5 policies are “replacement cost value” policies. This means that HO3 policies only reimburse you for the actual value (accounting for depreciation) of a damaged or destroyed item. In contrast, HO5 policies will reimburse you for whatever it costs of completely replace or repair a damaged or destroyed item. HO5 policies also offer coverage for a greater number of perils and offer higher personal property coverage limits than HO3 policies.
HO6: Condo Form
HO6 insurance is designed to meet the needs of condo owners. These policies provide dwelling coverage for the walls, floors, and ceilings of a condo unit, but not the entire building, as this is the responsibility of the condo association. HO6 forms also offer personal property, liability, and sometimes loss of use coverage. These policies provide coverage against the same perils as HO3 forms.
HO7: Mobile Home Form
This type of insurance offers specialized coverage for mobile or manufactured homes. HO7 policies are nearly identical to HO3 policies. The only difference is that the policy only offers such coverage when the home is stationary. Mobile homeowners will need to secure a separate policy to protect their homes while in transit.
HO8: Older Home Form
This type of insurance is meant to protect older homes that have been built with more relaxed standards. These policies only offer the coverage found in HO1 policies and generally apply to historic homes or homes that have been recognized as landmarks.
These are the different types of home insurance policies. Do you have additional questions about your homeowners insurance in Astoria, New York? If so, then contact the experts at 01 Insurance. Our dedicated team is eager to assist you with all your coverage needs today.