Keep Your Home Safe
Your home is your safe haven. It can sometimes seem unimaginable that anything bad could happen to it. Unfortunately, unexpected problems may sometimes occur, causing serious damage to your property or belongings. Trying to repair or replace everything can be difficult and expensive. Homeowners’ insurance can help you avoid these costly issues. If you need help finding a policy in NY, then work with one of the best home insurance companies in the area.
What Type of Home Insurance Is Available?
Homeowners’ insurance is, as the name implies, insurance that’s designed to protect you should your house sustain damage. A good policy should cover things like theft, fire, and vandalism, among other things. There are eight broad types of insurance you can get for your house:
- Basic Form (HO-1): The most basic insurance policy available. It’ll provide you with the cash value of items lost under certain circumstances, such as fire or theft. This type of policy is rarely offered anymore because it simply doesn’t cover enough to keep your belongings protected.
- Broad Form (HO-2): This type of policy will cover homes at their replacement cost and belongings at their actual cash value. It will protect you from everything that an HO-1 policy covers, as well as some additional threats, such as problems caused by built-in appliances.
- Special Form (HO-3): By far the most common home insurance policy. Like an HO-2, it offers replacement cost coverage for the home itself and will pay the actual cash value for any lost belongings. Unlike an HO-2, however, it offers “all risks” coverage for your home; as the name implies, this means your home will be covered in case of any issues unless otherwise stated in your policy.
- Rental Insurance (HO-4): HO-4 policies are actually better known as rental insurance. These policies cover your personal property, offer liability coverage in case the property owner wants to take legal action against you, and will help cover the cost of living should your apartment be damaged.
- Comprehensive (HO-5): Very similar to HO-3 policies in design, HO-5 policies go an extra step and will cover both your home and personal belongings at the replacement cost. In addition, they have the same “all-risks” coverage for both your personal belongings and your home itself.
- Condo Insurance (HO-6): Also known as condo insurance, these policies will cover many of the same things an HO-4 policy will. How extensive a policy you’ll need will likely depend on the requirements of your HOA.
- Mobile Insurance (HO-7): This is, essentially, mobile home insurance. They cover the same things as an HO-3 but are specifically targeted at mobile homeowners.
- Modified Form (HO-8): Some homes won’t meet the standards required to insure them. HO-8 policies are designed to provide coverage for those homes—though, like an HO-1, they will only cover certain basic threats and pay out the actual cash value for lost property. Determining which policy is right for your situation isn’t easy. Working with a qualified home insurance agent is the best way to determine which of the above policies will work best.
