5 Options for Policy Period in Home Insurance

home insurance

Among the most significant investments you can make include purchasing a home. There is a sense of security and comfort you achieve once you own a home. However, there are steps you must take to ensure that your home is well protected. It is wise that when buying a home, you purchase a home insurance policy alongside it. As a result, you get to save yourself from incurring out-of-pocket expenses when the house has been damaged. Besides, most mortgage lenders prefer clients with homeowner insurance policies that can cover the whole house or most of the house in case of damages. Therefore, having homeowner insurance policies is exceptionally vital for any homeowner.

You may experience a hassle identifying the right homeowner insurance policy to purchase. Most homeowners now understand the impact the policies have on their lives. Such realization has led to increased demand for coverage and, in turn, increased policy sellers. In addition, different factors may influence your policy purchase. The cost of homeowners insurance may be one of the underlying factors. However, you may find a well-reputed homeowners insurance company with coverage whose premium rates fit your budget when you shop around.

When in the process of purchasing a homeowners insurance policy, you may come across a variety of homeowner insurance policies. On this website, you can learn more about five of the most common types of insurance policies.


The above policy is the most basic of all homeowner’s insurance policies. As a homeowner, opting for such a policy implies only taking care of the coverage for the structure. Besides the home structure, the policy also stretches to cover other forms attached to your homes, such as your garage or deck. Also, the procedure only covers certain risks, including explosions, fire and lightning, theft, volcano eruptions, and vandalism. However, if you experience damage to your personal properties, you may have to dig into your savings to cover such expenses.

2. HO-2

The policy is considered to be broad form when compared to the HO-1 policy. The policy covers what is covered in the basic form policy and includes personal belonging coverage. The policy covers some of your personal belongings, including your clothing, furniture, appliances, and home tools. The range may stretch to the belongings that are in your car. However, for the insurance claim to work, you must have proof of the personal items. It is, therefore, wise for you to take pictures of your home items as part of your inventory management. Other than the damages covered by the basic form insurance policy, the coverage may also include water damage to your home.

3. HO-3

The above is the most recommended type of coverage for all homeowners since it is a unique form policy. The policy has basic and broad form coverage and includes liability, medical payments, and additional living expenses. Most of the time, when your home is destroyed, and you seek to rebuild your home, the cost tends to be more than the house’s purchase price. However, with such coverage, you are guaranteed that your home will be rebuilt with the specifications it had before. The policy also covers any damages to properties that are not yours. Regarding additional living expenses, the procedure is expected to take care of your bills in case you have to leave your home due to insured calamities and find a place such as a hotel to stay.

4. HO-4

The above homeowners’ insurance policy is expected to cover liabilities for renters. However, as a renter, the house you stay in is never yours. As a result, the procedure never covers any damages to the home. Instead, it protects your personal properties as well as additional living expenses. Among the things covered include vandalism, water heater damage, explosions, and theft.

5. HO-5

When looking for a comprehensive homeowner insurance policy, this may be the right coverage for you. It offers comprehensive covers such as your home, personal belongings, additional living expenses, liabilities, and third-party medical covers. The limit extensions for these policies are also to the upper limit as it even covers the jewelry. Despite the high premium you may end up incurring when you opt for this kind of insurance policy, you may appreciate its worth in the long run. If you have lots of valuable items, this kind of insurance policy may be the kind of thing you need. Besides, its coverage extends to pets, rodents and insects infestation, mold, vandalism of property that has been left unoccupied for long, and government actions.

Despite the need to close the home purchase deal fast, it would be wise to take your time when looking for a homeowner insurance policy to purchase. It may seem like a waste of resources during the purchase period. However, the benefits you stand to accrue with the right coverage policy for your home may be a lot.


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