Buying a home insurance policy to protect your house can require an understanding of the options that are available. There are several types of policies that are available, but the best plan for your house can depend on your personal concerns and the type of property that you have purchased.
An HO-2 policy is a type of plan that protects against a list of specific perils. It is slightly more than the bare-bones policies that were originally available, but it will protect your home from the items that are mentioned in the policy.
You can expect the policy to pay for your personal belongings, furniture and damages to the house whenever a situation damages your property that is covered in your plan. Keep in mind that many perils and situations are not covered, so it may be necessary to purchase additional coverage.
The HO-3 policy is a common homeowner’s plan that addresses the primary concerns that you may have when it comes to protecting your house. It will cover most situations as long as it is not specifically excluded in the plan.
Generally, the plan will not have coverage against floods or earthquakes. You will want to learn about the exclusions before buying the plan.
Specialty plans can cover a specific type of house, such as an older home or a condo. Keep in mind that your needs can vary, so the basic homeowner policies may not be appropriate for your property.
The type of home insurance plan that is best for your property can depend on your concerns and the house that you have purchased. In some cases, you may need a specialized policy. Contact us to talk to an agent and learn more about your policy options.